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Bang Sang-hoon, chief executive officer of Chosun Ilbo
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Court upholds guilty decision in media tax fraud case
The Supreme Court announced it would uphold a four-year suspended jail term for Bang Sang-hoon, chief executive officer of Chosun Ilbo, on charges of embezzlement and tax evasion. With the court's decision, the large-scale scale tax evasion case involving major media companies, begun in 2001, has come to a close.
With the media companies named in the case strongly accusing the government of trying to suppress them, the court¡¯s decision in the face of the powerful companies' claims has major ramifications, as it marks one of the first instances of both publicly confirming and punishing criminal activities by South Korea's family-controlled media conglomerates.
In February 2001, the National Tax Service began a probe into goings on at several media companies, leading to a large-scale investigation by prosecutors. In August 2001, Chosun Ilbo CEO Bang, Dong-a Ilbo Honorary Chairman Kim Byung-kwan and Kookmin Ilbo Chairman Cho Hee-joon were arrested on charges of evading corporate and inheritance taxes and misusing company funds. Another 10 executives at Chosun Ilbo, Dong-a Ilbo, JoongAng Ilbo, Hankook Ilbo, and Seoul Shinmun were also arrested.
However, the three newspaper owners, Bang, Kim and Cho, were freed on bail in October 2001, about two months after they were arrested. While they were each sentenced to a term in prison at the conclusion of the first trial, they appealed the charges to the Supreme Court. The court upheld the sentences, but relegated them to suspended status, meaning the men will not be incarcerated if they follow regulations set by the court. With the Supreme Court’s decision, Bang will be forced to step down from his head post at the Chosun Ilbo during his four-year suspended jail term. Media circles are paying keen attention to the potential changes in editorial and managerial style at the Chosun Ilbo following Bang’s departure. On the same day, the Constitutional Court ruled newspaper companies should disclose details of their managerial structure and practices. Media circles expect the ruling to force the Chosun Ilbo to improve its management transparency to a degree, but most believe Bang will retain his influence on the Chosun Ilbo because he is the newspaper’s owner. ＂Bang’s departure from management is the best thing for the Chosun Ilbo,＂ said Choi Min-hee, secretary general for the Citizen Alliance for Democratic Media Movement, ＂I hope that Bang’s departure will pave the way for transparent management at the Chosun Ilbo.＂
