Yang Moon-seok, a member of the Democratic Party, was convicted in the first trial on charges of unlawful lending and property value underreporting.
On the 28th, the Ansan branch of the Suwon District Court's criminal department 2 (presiding judge Park Ji-young) sentenced Yang to 1 year and 6 months in prison with a 3-year probation on charges of fraud under the Specific Economic Crimes Act, and a fine of 1.5 million won, which corresponds to a disqualification from election, on charges of violating election law.
If an elected public official is confirmed to have received a prison sentence or a fine of 1 million won or more for violating the Public Official Election Act, their election becomes invalid.
The court ordered A (57), Yang’s wife, to serve 2 years in prison with a 3-year probation for fraud under the Specific Crimes Act, and B (60), a loan recruiter, to serve 1 year and 6 months in prison with a 3-year probation for forgery of private documents.
The court noted, "In order to avoid high-interest dwelling mortgage loan payments, the victim's Saemaul Credit Union was applied for a business loan in the name of their daughter, and it was received," adding, "It is considered that the loan amount intended for business funds was used to repay the dwelling mortgage loan."
The court remarked, "The posts made on Facebook appear to be a reflection on media reports," but added, "Beyond simple frustration, falsehoods can be found, and given the context, detailed loan processes are included."
Yang and A are accused of using 1.1 billion won, received as a business operating fund in April 2021 in the name of their eldest daughter C, to repay debts related to apartment purchases.
In 2020, they purchased an apartment located in Seocho District, Seoul, for 3.12 billion won, and eight months later, Daegu Suseong Saemaul Credit Union established a mortgage against C for 1.32 billion won.
B, who received 200,000 won from A for false documents, was charged with forging 7 false transaction statements worth approximately 650 million won, as well as 2 bank account transaction statements with false transaction details, which were submitted to the bank under the pretext of having been used for C's business purposes.
Yang is also facing charges of willfully underreporting his property status during the candidate registration process for the 22nd National Assembly general election.