
What were Lee Jae-myung's 'lies'?
Legal expert says Supreme Court's ruling won't stop Lee from running for president but could raise trust issue
South Korea's Supreme Court on Thursday ruled that Rep. Lee Jae-myung, the former chair of the liberal Democratic Party of Korea and front-runner for the presidency, made two knowingly false statements during the 2022 election campaign — which the court said must be judged by a higher standard given his candidacy.
The court concluded that Lee's denial of personal ties with the late Kim Moon-ki, a key figure in the Seongnam land development scandal, amounted to the offense of 'publicly announcing false facts' under Article 250 of the Public Official Election Act, which applies to candidates in elections for public office.
Lee had been indicted for his response while he was a presidential contender during a televised Channel A interview Dec. 29, 2021 to a question about whether, when he was mayor of Seongnam, he had personally known Kim, then head of Development Division 1 at Seongnam Development Corp., who committed suicide on Dec. 21, 2021.
'The People Power Party took a photo of four people and released it as if I was playing golf. But when I checked it, they took one part of the photo of our entire group with us and showed it like this. It was manipulated," Lee had answered at the time.
Though the Seoul High Court acquitted him on March 26, saying that Lee's comment was that the photo had been manipulated rather than a denial that he had played golf with Kim, the Supreme Court rejected the lower court's verdict.
'The statement can only be understood as the defendant denying that he played golf with Kim Moon-ki during the overseas business trip they took together, and is not being interpreted to have multiple meanings as the lower court determined,' said Chief Justice Jo Hee-de during Thursday's televised ruling.
According to the chief justice, political candidates, particularly presidential ones, are held to a higher standard of truth in public statements, and their freedom of political expression is not equivalent to that of ordinary citizens.
Lee also faced scrutiny for a separate claim made during an Oct. 20, 2021 parliamentary hearing, in which he, then a presidential contender of the Democratic Party and the governor of Gyeonggi Province, said the Land Ministry under then President Park Geun-hye "threatened to make an issue of the dereliction of duty," so "he had no choice" but to approve a zoning change for a development project in Baekhyeon-dong while serving as Seongnam mayor.
The lower court had ruled this to be an exaggeration, but the Supreme Court disagreed, saying the statement was presented as "a public announcement of 'fact,' not a simple exaggeration or an abstract expression of opinion," according to Jo, so could have misled voters.
Legal observers say Thursday's Supreme Court ruling may not derail Lee's campaign for president -- his third run to date -- in the short term, as the final rulings in his five ongoing criminal cases are unlikely before the June 3 vote. But the verdict could hurt his public image.
'The ruling won't stop him from running, but it will raise questions in the minds of voters,' said a former judge who is now an attorney who requested anonymity. 'Rebuilding public trust will be crucial for his campaign.'
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Korea Herald
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Korea Herald
4 hours ago
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[Yoo Choon-sik] President Lee should look beyond market cheers
The South Korean stock market soared on each of the first two trading days following President Lee Jae-myung's official inauguration after securing a decisive victory in the early election held on June 3, winning by a substantial margin over his opponents. The peaceful transition of power and the political clarity it brings have been met with visible enthusiasm. Undoubtedly, Lee and his party, together with the people of South Korea, have every reason to relish the celebratory honeymoon phase of their administration. The stock market's benchmark Kospi posted a remarkable combined gain of 4.2 percent over those two days to end at 2,812.05 points on Friday, representing the highest closing level in nearly a year since July 18 last year. During the same period, foreign investors made net purchases totaling 2.07 trillion won ($1.52 billion) on the main board, marking the most net inflow from overseas investors in a year. This sharp uptick in buying activity reflected renewed confidence in the Korean market under the new leadership. The rise in stock prices is widely interpreted as a reflection of relief across the investor community, stemming from the peaceful resolution of the monthslong political impasse, triggered by the former president's controversial declaration of martial law last December. With stability now restored, there is cautious hope that Lee's administration will introduce pragmatic, market-friendly reforms. Contributing to the rally are also favorable external factors: a persistent weakening of the US dollar against major global currencies and the announcement that the US and China intend to resume trade negotiations —developments that typically benefit emerging markets like South Korea. Historically, traditional markets served as informal forums where policymakers could gather sentiment from the people, as citizens exchanged views and insights while trading goods. 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One of Lee's key campaign priorities is addressing the "Korea Discount" — a persistent and well-documented phenomenon that refers to the comparatively low valuation of Korean-listed companies relative to their international peers. It is largely attributed to weaknesses in corporate governance, low shareholder returns and systemic inefficiencies in South Korea's regulatory and economic framework. To address this issue, Lee has pledged to revise Article 382-3 of the Commercial Act. The proposed amendment would obligate directors of listed companies to act not just in good faith but specifically in the interest of both the company and all its shareholders. The current version of the act requires directors to act for the benefit of the company, but lacks explicit emphasis on shareholder interests. Lee has also vowed to introduce the cumulative voting system. Many view this as a powerful tool for enhancing minority shareholder rights, as it allows shareholders to pool votes to elect at least one representative to a board, in contrast to the traditional system of one vote per share per director. Deliberative policymaking In addition, he supports other measures aimed at prompting companies to return a greater portion of earnings to shareholders and limiting the negative effects of corporate spinoffs that often disadvantage minority investors. While these governance-focused reforms are grabbing headlines, Lee has also promised fiscal stimulus on a massive scale. Though not explicitly intended to push stock prices higher, a major supplementary budget is expected to provide a strong economic stimulus to offset faltering domestic demand. This comes at a time when South Korea, an export-driven economy, is grappling with declining overseas sales due mainly to the US government's imposition of steep tariffs on most of its trading partners. It is worth noting that the previous administration had already introduced a 13.8 trillion won supplementary budget back in May, aimed to assist those affected by weak consumer spending, fund recovery in wildfire-stricken regions and support the development of national artificial intelligence infrastructure. The new extra budget being considered under Lee's administration is reportedly about three times the size of the previous one, signaling a bold fiscal approach. Taken together, these initiatives have offered a strong psychological boost to the stock market. They enhance the growth outlook for shares in a wide range of South Korean companies, many of which have long underperformed relative to their counterparts in other advanced economies. The anticipation of pro-growth reforms, combined with short-term liquidity injections, has widened the upside potential for equities. Yet, such optimism must be tempered with realism. 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Without broad consultation and careful planning, the spending could end up inefficiently allocated, raising government debt while failing to generate meaningful economic uplift. That would not only disappoint voters but also strain public finances further. These concerns are especially pertinent in today's political landscape, where the Democratic Party of Korea holds a commanding majority across both the executive and legislative branches. This political dominance could enable the administration to push forward its agenda swiftly, but also tempt it to bypass the kind of open, deliberative policymaking that democracy requires. President Lee must remain aware that while voters handed him a clear mandate, they did not grant him unchecked authority. The people expect reform, yes — but they also expect balance, consultation and accountability. As the proposed revision of the Commercial Act implicitly acknowledges, those in power have a duty to act not just in their party's interest, but in the collective interest of the entire nation. Yoo Choon-sik worked for nearly 30 years at Reuters, including as the chief Korea economics correspondent, and briefly worked as a business strategy consultant. The views expressed here are the writer's own. — Ed.


Korea Herald
15 hours ago
- Korea Herald
Over 370,000 sign petition to expel Lee Jun-seok over misogynistic remark
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