A prison sentence has been finalized for Yang Kyung-suk, 65, former head of Radio21, on charges of defrauding investors of 3.3 billion won by falsely claiming North Korea's Taedonggang Beer could be brought into Korea and sold.
The Supreme Court's First Division (presiding Justice Seo Kyung-hwan) said on the 2nd it had upheld the lower court ruling that sentenced Yang to five years in prison on charges including fraud under the Act on the Aggravated Punishment, etc. of Specific Economic Crimes, in a decision on July 16.
In Oct. 2021, at her studio in an officetel in Yeongdeungpo-gu, Seoul, Yang urged victim A to invest, saying, "There is a project to help North Korean compatriots. We will import Taedonggang Beer from North Korea, use the proceeds from sales to purchase masks, which are quarantine supplies, and send them to North Korean compatriots."
At the time, Yang said, "We will provide 30 million masks to North Korean compatriots, and guarantee a profit of at least 200 won per mask. The principal is guaranteed, and a revenue of at least twice the investment amount will be generated." A remitted 977.25 million won to Yang over 20 transfers.
Yang also secured investments or borrowed money by saying things like, "The Ministry of Unification and Goyang city are sponsoring a bartering campaign to overcome COVID-19 in South and North Korea," "We are preparing a 'broadcast to help North Korean residents,'" and "We have won the business rights to supply masks to North Korea, and the unit price contract with the Ministry of Unification is finished."
Using these methods, Yang deceived and took 3.33325 billion won from seven victims. Prosecutors determined the business Yang described did not exist, and that Yang planned to use the investment funds to repay earlier investors' money or for personal purposes such as purchasing virtual assets (coins).
When the investigation began, Yang fled overseas and was arrested in China as an undocumented immigrant.
The first trial sentenced Yang to six years in prison. The first trial court said, "It appears that around 2021, Yang did send Taedonggang Beer to a victim," but added, "However, there is no material to indicate that Yang established concrete plans for a broadcast to help North Korean compatriots, or that the North purchased large quantities of Taedonggang Beer and stored them in a warehouse in Dandong, China."
The appeals court sentenced Yang to five years in prison. During the trial, Yang's side argued that around Sept. 2020, 1 million bottles of Taedonggang Beer were actually received in regions including Dandong from North Korea under contracts with Chinese and North Korean companies, but, due to the COVID-19 situation, bringing the beer into Korea became difficult and it expired and was discarded. They claimed there was an actual attempt to bring Taedonggang Beer into Korea.
However, the appeals court said, "It is doubtful whether an actual contract was concluded," noting, "There was no objective data confirming the existence of the Chinese and North Korean companies that were contracting parties or verifying the identities of their representatives." The Supreme Court dismissed Yang's appeal.
Yang built ties with pro-Roh (pro–Roh Moo-hyun) figures after joining "Roh Moo-hyun Radio" (the predecessor of Radio21), which launched in Nov. 2002. She gained recognition by broadcasting about the 2008 candlelight rallies against U.S. beef imports and the death of former President Roh Moo-hyun.
Earlier, in Sept. 2013, Yang was brought to trial on charges of receiving more than 4 billion won in money and valuables from three people in connection with proportional representation nominations for the Democratic United Party (now the Democratic Party of Korea) and received a finalized sentence of three years in prison.
In 2015, she also received a finalized two-year prison sentence on charges of defrauding an investment by pretending she had signed a contract with MBC to produce a diet competition program with a health food seller. Yang was also tried on charges of forging an apartment contract, but was acquitted by the Supreme Court.
Taedonggang Beer was a project that former National Defense Commission Chairman Kim Jong Il pushed with particular interest, importing brewing equipment from a closed British brewery and beginning production in 2002. It became well-known after the Economist in Britain said in 2012 that "South Korean beer is not even as tasty as North Korea's Taedonggang Beer."