A former Meritz Securities executive, who was sentenced to eight years in prison at the first trial on charges of illegal loans totaling 118.6 billion won, requested bail at the first hearing of the appeal, citing the need to ensure the right to defense. The court, however, signaled a negative stance, questioning the need for additional examination.
The Criminal Division 4-1 of the Seoul High Court (High Court Judges Kim In-gyeom, Seong Ji-yong and Jeon Ji-won) on Apr. 1 held the first appeal hearing for former Meritz Securities executive a person surnamed Park and others, who were indicted on charges of violating the Act on the Aggravated Punishment of Specific Economic Crimes (embezzlement and breach of trust).
Park and others were indicted on charges of illegally obtaining loans totaling 118.6 billion won by using real estate project financing (PF) information acquired in the course of duty while in office to set up a family-owned corporation and purchase 11 real estate properties worth about 90 billion won. They are also accused of giving a total of 840 million won in cash and valuables to subordinates a person surnamed Kim and a person surnamed Lee through the family corporation in the name of salaries and severance pay in return for arranging the loans.
In the first trial, the court said it was "a serious crime that damaged the integrity of financial company officers and employees and the market order," and sentenced Park to eight years in prison and a fine of 1 billion won.
At the first appeal hearing that day, Park's counsel argued for a reduced sentence, saying, "We acknowledge the facts themselves, but there was an aspect of revenue sharing under a partnership relationship, and the first-trial sentence is excessive." The counsel then asked the court, "Since there is no risk of evidence destruction, please grant bail so the right to defense can be exercised while not in custody."
The court, however, leaned toward maintaining detention. The court noted, "This is a case in which sufficient examination has already been conducted for more than a year at the first trial," adding, "It is questionable whether there is any additional evidence to submit or examine at the appellate stage."
In legal circles, given that the offense is a major financial crime exceeding the 100 billion won range and that a heavy sentence has already been handed down at the first trial, there is a view that a mere appeal to guarantee the right to defense will likely not clear the bar for granting bail.
The court plans to hold a continued hearing at 9 a.m. on Apr. 29.