Cho Chang-yeon, the grandson of the late Chairman Cho Jeong-gu, founder of Sambu Engineering & Construction, won in part on appeal in a lawsuit seeking the return of lending funds of about 2 billion won against Yoon Gwan, head of BlueRun Ventures (BRV). Yoon is the husband of Koo Yeon-kyung, head of the LG Welfare Foundation and the eldest daughter of the late LG Group patriarch Koo Bon-moo.
The issue in this case was whether the 2 billion won that changed hands in cash without a promissory note could be seen as money lent. The first trial ruled in favor of Yoon, saying it was hard to see that Cho had lent the money, but the appellate court saw it differently.
On the 20th, the Civil Appeals Division 6-3 of the Seoul Central District Court partially overturned the first-instance ruling that had found for the defendant in Cho's appeal in the lawsuit to recover lending funds against Yoon.
The court ruled, "The defendant shall pay the plaintiff 2 billion won and interest calculated at an annual rate of 5% from Jan. 22, 2017, to May 22, 2022, and at an annual rate of 12% from the next day until full repayment." Yoon was also ordered to bear all litigation costs.
Cho's side has argued that around 2016, Yoon requested 2 billion won in 50,000-won bills while assisting with the sale of the Renaissance Hotel, and Cho delivered the cash to the BRV Korea office. The two are alumni of Gyeonggi Elementary School and are known to have once worked together during the Renaissance Hotel sale and redevelopment.
Yoon's side countered that there was no borrowing of money. Even if there were conversations about money, they argued, it was not lending funds but discussions about handling union issues or business expense arising during the Renaissance Hotel sale and redevelopment.
Earlier, the first trial dismissed Cho's claim in September last year. The plaintiff must prove the fact of having lent the money, the court said, and the materials Cho submitted were insufficient to recognize that 2 billion won was lent to Yoon.
However, on appeal, police investigation findings and statements from people around the parties following a criminal complaint became grounds to overturn the judgment. After losing at first instance, Cho filed a criminal complaint against Yoon on fraud charges. The appellate court found that even without direct evidence such as a promissory note, considering the related conversations and statements, the parties' relationship, and the circumstances of the money delivery, the 2 billion won could be regarded as lending funds.