Justice Minister Nominee Cho Kuk Scandal in South Korea–Treason, Corruption, Hypocrisy, and More

2019-8-27, Tara O

For the position of South Korea’s Minister of Justice, President Moon Jae-in nominated Cho Kuk, who has been mired in controversies.  Details follow.

When Moon Jae-in became South Korea’s president in May 2017, he stated:  “In the Moon Jae-in and Deobureo Minjoo Party (Democratic Party of Korea) administration, opportunity will be equal, the process will be fair, and the result will be just.”  He further said “We’ll create a world without privileges and fouls.”  His administration then began to investigate hundreds of people prior to any guilty verdicts from trials in the name of “jeokpae cheongsan” (Jeopkape=deep rooted evil, accumulated ills; cheongsan=liquidation; elimination).  Western journalists have used “anti-corruption” as the preferred term. Many were jailed and some even committed suicide due to severe pressure and unfairness. Lack of evidence supporting the various accusations was not a problem in the atmosphere where South Korea was portrayed as “Hell Joseon,” an unfair and unjust society that must be corrected.

Within the Blue House, the Senior Secretary to the President for Civil Affairs and Justice oversees the tax agencies, the National Intelligence Service, the prosecution, the courts, the police, the inspector generals and investigative arms, all of which were busy with the “jeokpae cheongsan” campaign.  The office is also in charge of vetting personnel to be prosecutors and judges.  Such a powerful position as the Senior Secretary for Civil Affairs and Justice was filled by Cho Kuk (조국).

On August 9, 2019, Moon Jae-in designated Cho Kuk to be the next Minister of Justice.  Cho Kuk has been the Senior Secretary to the President for Civil Affairs and Justice at the Blue House before he resigned the position on July 26, 2019, amidst his 50+ anti-Japan comments on his Facebook account, and returned to his position as a law professor at Seoul National University.  Cho is currently preparing for the National Assembly hearing for the new position. His name has also been mentioned as a potential presidential candidate for the next presidential election.

Controversies have surrounded Cho Kuk for some time, and now additional information is surfacing daily on topics such as  his background in subversion and his corrupt activities. Moon Jae-in has pushed through 16 nominees in a row without the National Assembly’s approval; many of his nominees were controversial, with accusations of various illegal activities.  It is not surprising that the official that vets the nominees for the prosecutors office and the Justice Ministry–the Senior Secretary to the President for Civil Affairs and Justice–found nothing wrong with many of the nominee’s illegal and unethical behaviors. Moon pushing them through despite not having the National Assembly’s approval shows Moon’s authoritarian tendencies. Two issues are highlighted in this paper. One is whether Cho Kuk is qualified to be Justice Minister and the other is the problems within the Moon administration, which has claimed that it is clean and stands for equality, justice, and fairness, while labeling their political opponents as “jeokpae.”  If Cho Kuk’s confirmation is pushed through, it also suggests the Moon administration will stay on course and continue to push South Korea toward socialism and orient South Korea toward China and North Korea. The confirmation hearing is likely to be a major test to be watched carefully.

Subversion through the Socialist Workers League of Korea

Cho Kuk was a key member of an illegal revolutionary socialist organization called Sagwawon (사과원) (direct translation: southern Korea institute of socialism science), which is under Sanomaeng (사노맹) (Socialist Workers League of Korea).  It was created in November 1989 by Baik Tae-ung (백태웅, but he used the alias Lee Jong-ro, 이정로) and  Park Ki-pyong (박기평, but he used the alias Park No-hae, 박노해) to form a Workers’ Party to lead an armed socialist revolution in South Korea. It recruited the followers of the National Democratic Revolution theory (NDR or Minjok Minjoo Hyeogmyeongron, 민족민주혁명론) and had 3,500 members, the largest since Namnodang (Workers’ Party of Korea-South).  Namnodang was the Workers’ Party of Korea’s (the party in North Korea) branch in South Korea.

At a press conference on August 16, 2019, National Assemblyman Kim Jin-tae, Liberty Korea Party, shared what he found in “Our Ideology,” the Sanomaeng’s Bulletin published by Cho Kuk.  Kim said it advocated for armed insurrection to establish socialist revolution, and called Cho Kuk more dangerous than Lee Seok-gi (이석기), who has been jailed for sedition.  The Supreme Court deemed the organization “ijeok,” (benefits the enemy), and Kim Jin-tae stated Sanomaeng is an anti-state organization that endangers South Korea’s liberal democratic order.  To achieve armed uprising for socialist revolution, Sanomaeng made explosives, planned to steal weapons from armories, and even made poison pills to commit suicide, if captured.

In 1993, Cho Kuk was sentenced to jail for violating the National Security Law due to his involvement in Sagwawon and Sanomaeng.

Sanomaeng’s Resolution Letter (below) states that the members “will not leave behind even a drop of blood to struggle for the success of socialist revolution in South Korea for comrades, workers, farmers, and proletariat brothers.”  It further states “comrades, place weapons in our hands to fight the enemy.”

Cho Kuk told the press on August 14, 2019 that he is “neither proud nor ashamed” of his past activities in the subversive organization Sanomaeng.  In other words, Cho is not ashamed of his efforts to overthrow the government through an armed revolt to create a workers’ socialist country.

Numerous people are questioning Cho Kuk’s fitness for duty as the Minister of Justice.  Hwang Jang-soo (황장수), a popular commentator, asked “How can someone who wanted to subvert South Korean system to create socialism through a workers’ revolution serve as the country’s Justice Minister.?”  (1:28) A young YouTuber Seong Jae-joon (성재준) flatly stated, Cho Kuk, who tried to create a socialist system by overthrowing the system using armed revolt can never be a Justice Minister of South Korea, a liberal democracy.  (0:19)

There are, however, those who defend Cho.  Seongnam City Mayor Eun Su-mi (은수미), Deobureo Minjoo Party (Democratic Party of Korea), who was also complicit in the Sanomaeng, gave a stern warning in defense of Cho Kuk, stating “Don’t be impertinent to Sanomaeng anymore.”

As is the case with Im Jong-seok, former Chief of Staff at the Blue House, who angrily shot back at a lawmaker for asking whether he turned away from his Jusapa (KimIlSung’ism) beliefs, Cho Kuk also has not renounced his beliefs about overturning the current system and establishing socialism in South Korea.  (For more on Im Jong-seok and jusapa, see here.)

Note1 :   Sagwawon is short for Namhan Sahoe Juui Gwahakwon (남한사회주의과학원); translated directly as south Han institute of socialism science; “south Han” is to indicate the southern half of the Korean Peninsula).  Sagwawon falls under Sanomaeng, which is short for Namhan Sahoe Juui Nodongja Dongmaeng (남한사회주의노동자동맹) or the Socialist Workers League of Korea (SWLK).

Note 2:  Baik Tae-ung, the organizer of Sanomaeng, is a professor at the University of Hawaii Manoa, Williams S. Richardson School of Law.

Unethical or Questionable Financial Activities

In addition to Cho’s Sanomaeng background, another controversy involves family finances.  One controversy surrounds Cho and his family’s investment in private equity and the other controversy involves a scheme to steal money from various entities.

      Blue Core ValueUp Private Equity Fund

According to the nomination package submitted to the National Assembly, Cho Kuk’s wife Jeong Kyung-sim (정경심), a professor at Dongyang University, agreed to invest ₩6.745 billion ($6.3 million) in the “Blue Core ValueUp Private Equity Fund” (블루코어밸류업1호 사모펀드) managed by Co-Link Private Equity (PE) (코링크프라이빗에쿼티) firm on July 31, 2017.  On that day, Cho’s daughter (28) and son (23) also committed to invest ₩355 million ($333,000) each.  The total investment committed by Cho’s family is ₩7.455 billion ($7 million).  The investment agreement occurred about two months after Cho Kuk was appointed as the Senior Secretary to the President for Civil Affairs and Justice (appointed on May 11, 2017).  Thus far, the actual amount invested totals ₩1.5 billion ($1.4 million), with the wife investing ₩950 million ($892,000) and Cho’s son and daughter investing ₩50 million ($47,000) each.

The problem is that the ₩7.455 billion ($7 million) that Cho’s wife and children agreed to invest exceeds Cho’s reported assets of ₩5.64 billion ($5.3 million).  The difference is ₩1.8 billion ($1.7 million).

The questions are 1) how can Cho’s family agree to invest more than they have and 2) where will the additional  $1.7 million or more come from and 3) how sound is the strategy of investing the entirety of one’s assets in one fund, unless one is definitely expecting profit?  These facts raised the additional question of whether insider information was involved. Does he have information that assures him his family will make good return on investment, or at least not lose the money invested?  Is the $525 million investment by China a factor? (See below about Co-Link Private Equity)

As this issue became heated, Cho stated that the amount of the investment commitment is set in a flexible way, and there is no additional commitment to invest under the contract…and there was no additional plan at the time of signing the contract to make additional investments.”  If that is the case, why did his wife agree to committing such a large amount for investment for the fund? Normally, if the PE company makes a “capital call,” and the committed amount is not produced by the investor, the company can charge for damages or confiscate the security money.  Why would Cho take such a great risk?

National Assemblyman Lee In-young (이인영), the floor leader of the Deobureo Minjoo Party and the former head of the radical student organization Jeondaehyeop (the same position as Im Jong-seok), defended Cho Kuk, saying “it is confirmed that there is no legal issue” and “[they] did not invest as much as the maximum limit” on August 16, 2019 when he attended the 10th Anniversary Photo Exhibition of Kim Dae-jung and Roh Moo-hyun.

     Co-Link Private Equity (PE)

Co-Link Private Equity (PE) is not very well known.  According to accountants, Co-Link PE is not known in the industry, which is odd, since it is a small industry in which networking is important.  Additionally, it does not seem to be located at the registered address in Yeoksam-dong, Gangnam-gu, Seoul.  Seoul Economy News staff actually went to the registered address of Co-Link PE, but discovered there was no such company at that address.

Private Equity firms usually are run by senior executives from foreign investment banks (IB), MBB (McKinsey, BCG, Bain) management consulting firms, and law firm lawyers.  Co-Link is unusual in that it is headed by someone with a different background, Lee Sang-hoon (이상훈), formerly of Allianz Life, who is the third president of Co-Link PE. (5:35)  It has three employees, including its president Lee.   It turns out that the real owner is Cho Kuk’s nephew once removed, who goes by “Mr. Cho.”  (5:58)

Co-Link Private Equity (PE) firm, was established in early 2016 and received approval from the Financial Supervisory Service on April 12, 2016.  Two weeks later on April 28, 2016, Co-Link PE announced that it signed a Memorandum of Understanding (MOU) with China’s Jiangsu Province Huakun Science and Technology Development (public) Corporation [장쑤성(江蘇省) 화군과학기술발전유한공사와] to invest ₩600 billion ($525 million) for the creation of the Korea-China Industrial Fund.  The MOU was signed when President Luwei of the above Jiangsu provincial government’s public corporation visited Seoul. This is a rather large sum, especially for a private equity firm that is little heard of. Co-Link plans to “invest in high growth and original technology-oriented businesses, including domestic entertainment and Korean culture-related businesses.”

Private equity is a highly risky venture.  Numerous suspicions arise from Co-Link PE, especially as a result of Cho’s family betting all of their listed assets on such a firm. It also raises the question about the role of China’s Communist Party’s (CCP) money, since the funding comes from China’s provincial government’s public corporation, and its ties to Cho Kuk.  Cho Kuk’s name has been mentioned as a potential presidential candidate as well. The CCP has been known to conduct influence operations, including buying political influence and using it to help those loyal to Beijing into elected political positions, as it has done in Australia and elsewhere.

     Strange Structuring of Woongdong Academy’s Finances

Cho Kuk’s family acquired and ran Woongdong Academy (웅동학원), an educational foundation, which runs Woongdong Middle School.  Currently, Cho Kuk’s mother and his wife are on the board of Woongdong Academy (웅동학원), which Cho Kuk’s father Cho Byun-hyun (조변현) acquired in 1985.  Initially, Cho Kuk’s father became the Chairman of its board of directors while Cho Kuk was a member of the board of directors.  The case of Cho Kuk’s younger brother and his ex-wife suing Woongdong Academy for millions of dollars has led to the suspicion that the family concocted an arrangement to steal money from Woongdong and the government, while passing on wealth generationally without paying high inheritance taxes.  This case is so suspicious that even Hankyoreh Newspaper, which had long supported the Moon administration and the personnel within, is reporting the issue.

The Woongdong Academy board decided to move Woongdong Middle School to a less developed area in the foothills about 3 km away from the original school location within the city of Jinhae, South Gyeongsang Province.  There is now a condo complex at the original site. It is unclear whether Cho Kuk’s family sold the land or developed the condo complex on their own. To relocate the Woongdong Middle School, a new building was to be constructed at the new site.

Woongdong Academy borrowed ₩3 billion ($3.97 million) in December 1995 (worth ₩5.9 billion in 2019) and  ₩500 million ($412,000) in June 1998 for construction from Dongnam Bank, using the school building and site as collateral. [Note: South Korean won floated freely in late 1990s in response to 97-98 Asian Financial Crisis.]

In 1996, Woongdong Academy awarded a ₩1.637 billion ($2.17 million) construction contract to Koryo Consolidated Constructions (고려종합건설), which is owned by Cho Kuk’s father; Cho Kuk’s father subcontracted a portion of the construction to Koryo City Development (고려시티개발), owned by his son Cho Kwon, who is Cho Kuk’s younger brother.  In effect, Cho’s family gave themselves the contract and subcontract. Cho Kuk’s father and brother operated the construction companies and received a bank loan of ₩950 million ($ 1.23 million), guaranteed by the quasi-government Korea Technology Finance Corporation (KOTEC), which is financed mostly by taxpayers’ money.

Woongdong Academy, despite the ₩3.5 billion ($4.38 million)  loan from Dongnam Bank, does not pay the construction bill. The ₩3.5 billion mysteriously disappeared, and no one knows where the money went.

Koryo Consolidated Construction company went bankrupt in 1997.  Thus, KOTEC ended up repaying the construction loan to the bank.  KOTEC then sued seven joint guarantors, including Cho Kuk’s parents and younger brother for damage compensation and won in 2002 and 2011.  The money was not paid to KOTEC (should have received ₩4 billion). In effect, Cho Kuk’s family took out a large loan, and made arrangements for the tax-payers to pay off the bank loan, by creative accounting and transactions.

Cho Kuk’s brother Cho Kwon, meanwhile, divorced his wife Cho Eun-hyang (조은향), which made Cho Eun-hyang a legally separate entity from Cho Kwon.  In 2005, Cho Kwon liquidated (3:06) Koryo City Development company, and formed another company, Coba C&D.  Coba C&D is in Cho Eun-hayng’s name. In 2006, Cho Eun-hyang then sued Woondong Academy, where her former father-in-law is the chairman, for ₩1.6 billion ($1.70 million) in construction cost and  ₩3.6 billion ($3.83 million) in late interest for a total of ₩5.2 billion ($5.53 million)  [₩4.2 billion ($4.47 million) for Coba C&D and  ₩1 billion (1.06 million) for Cho Kwon’s ex-wife].  Coba C&D and Cho Eun-hyang won in February 2007 after Woongdong Academy did not contest, as it gave up the plea without any opinion.  Mr.Kim, who has been a board member of Woongdong Academy since 1976 stated that the Chairman never held a meeting of the board in reference to the lawsuit so he did not know, and he was shocked to discover that Woongdong lost the case without a plea.

In 2017, Cho Kuk’s brother’s ex-wife Cho Eun-hyang again sued Woongdong Academy, where Park Chung-suk (박정숙), her ex mother-in-law and Cho Kuk’s mother, is now the Chair (Cho Kuk’s father, who was the Chair, passed away in 2013), for the unpaid amount.  By the time of the second law suit, the amount ballooned to ₩10,083,800,000 ($8.8 million). (5:58)  Woongdong Academy again gave up without a plea, and Cho Kuk’s brother’s ex-wife won the lawsuit.  Currently, Cho Eun-hyang, Cho Kuk’s brother’s ex-wife, and Cafe Hugo (where Cho Eun-hyang is the president) own the claims won in the lawsuit against Woongdong Academy.

It is unusual for an entity to give up the plea, much less do it twice.  An attorney in Seoul suggested there are two reasons for such a move–one is that it was clear there is no contest and the other is the plaintiff and the defendant making some sort of arrangements and wanted to leave a paper trail of lawsuits.

Cho Kuk’s brother Cho Kwon and his wife

There are also suspicions that Cho Kuk’s brother Cho Kwon and his wife’s “divorce” is fraudulent, in order to accommodate the elaborate scheme to benefit the Cho family.

If Cho Kuk’s brother’s company Koyro City Development received the construction payment from Woongdong Academy, then he would have to repay the money to KOTEC.  It is suspected that to avoid paying the money, Cho Kuk’s brother divorced his wife and created a paper company in her name and transferred to her ₩1 billion ($1.06 million) in claims and transferred to the new company Coba C&D ₩4.2 billion ($4.47 million) in claims via the first lawsuit against Woongdong Academy.

Afterwards, Cho Kuk’s brother’s now ex-wife and the new company sued Woongdong Academy again.  Thus Woongdong Academy’s assets are transferred to Cho Kuk’s family and it is done in a tax-free way.  If Cho Kuk’s parents were to pass on their wealth to their sons Cho Kuk and Cho Kwon, they would have to pay high inheritance taxes.   For inheritance of ₩3 billion or more, the inheritance tax is ₩1 billion 40 million (₩1,040,000,000) plus 50% of the amount in excess of ₩3 billion, according to Article 25 of Inheritance Act and Gift Tax Act.(1)

The debtor for KOTEC was Cho Kuk’s father, mother, and younger brother.  Cho Kuk’s father Cho Byun-hyun passed away in 2013. At his death, his assets were valued at ₩21 (2 cents), of which Cho Kuk’s inheritance amount was ₩6 (½ cent) .  (3:20) The Cho family received “limited recognition” approval from the court, which means his family members do not have to pay any of Cho Byun-hyun’s massive debt, other than what they inherited.  (4:22) In July 2017, the Eastern Branch of Busan District Court ordered Cho Kuk and his brother to pay Korea Asset Management Corporation (KAM Co) ₩1.2 billion ($1.06 million) each from their inheritance. Neither KOTEC or KAM Co would receive anything beyond 2 cents, and that is if Cho Kwon’s ex-wife does not get it first, since she won the lawsuit against Woongdong Academy, which was years after the “limited recognition” ruling.

Cho Kuk’s brother Cho Kwon and his ex-wife still live together in a luxury condo now owned by Cho Kwon’s ex-wife in the ritzy part of Busan called Haeundae Beach. This one was sold to Cho Kuks’ brother’s ex-wife by Cho Kuk’s wife.  In November 2017, Cho Kuk’s wife sold their luxury condo in Busan to Cho Kwon’s ex-wife.  This was when Moon’s administration ran a campaign to shame and disincentivize ownership of multiple properties.  Cho Kuk and his wife owned more than one residential property at that time. They kept on one in Gangnam, Seoul, and sold the luxury villa in Busan to the ex-wife of Cho Kuk’s brother.

Cho Kuk’s mother also lives in the same neighborhood in Busan in a luxury villa at Woosung Villa, which is also owned by Cho Kuk’s brother’s ex-wife.  In December 2014, Cho Kwon’s ex-wife bought a luxury villa with the money from Cho Kuk’s wife. (18:44)   Although Cho Kwon and his ex-wife have been divorced for 10 years, the same address is still used to register the identification cards of Cho Kuk’s mother, brother Cho Kwon, and his ex-wife. (15:03)   Very recently, they devised a rental contract, with a monthly rent of ₩400,000 ($329), which is far below the market value.  Furthermore, they made the mistake of swapping the lessee and lessor, so that the lessor is shown as Cho Kuk’s wife and the lessee is Cho Kwon’s wife (the legal owner of the villa), instead of vice versa.  (25:05)

Another unusual act that a divorced couple do is to start a business together.  In February 2013, a bakery and a bakery company (May Lily and Ma Lily Foods) were bought–Cho Kwon is the president (a delinquent borrower) and his ex-wife is the 100% stock owner.  (17:13) On March 8, 2018, Cho Kwon’s wife resigned as CEO of yet another company Green C&D, which used to be Coba C&D, and Cho Kuk’s brother Cho Kwon became the new CEO. (26:45)

The names on the headstone of Cho Kuk’s father is also telling and raise the suspicion that the divorce is fraud.  Under the “Daughter-in-laws” heading on the tombstone (middle column) are listed Jeong Kyung-sim (정경심) and Cho Eun-hyang (조은향), although by then Cho Kwon and Cho Eun-hyang had long been divorced on paper.

The web of legal entity creation and transactions raises the question of whether Cho Kwon and Cho Eun-hyang’s divorce is fraudulent, and was done for the benefit of the Cho family to not pay loans, separate their assets from liabilities, and to receive tax-free inheritance.

Note:   KOTEC (or Korean abbreviation KIBO) is a non-profit quasi-government agency affiliated with the Ministry of Small and Medium Size Enterprises (SME) and Startups (MSS), established by Korea Technology Finance Corporation Act. The majority of the funds for KOTEC come directly from the government.

Income Tax Delinquency

It also turns out that Cho had two delinquent consolidated income tax debts of ₩2,590,000 ($2,400) and ₩3,300,000 ($3,000), which he paid on August 11, 2019, two days after Moon designated Cho as the Justice Minister.  Cho had an additional delinquent comprehensive income tax of ₩1,540,000 ($1,400) from 2015, which he paid on July 10, 2019.

Cho Kuk’s Daughter

The Moon administration and his Party talked of opposing English language high schools in the name of equality and fairness, yet many of them have sent their children to English language schools.  Cho Kuk is one of them. He also sent his daughter to an English language high school. While she was in high school, she interned for two weeks at a medical research center. What came out of that was a publication of medical research with multiple co-authors, in which Cho Kuk’s daughter’s name appeared first, followed by professors and Ph.D.s who have worked on the project and conducted experiment for years.   The controversy about Cho Kuk’s daughter has a long list as Cho Kuk’s own list of controversies.

Cho Kuk’s daughter Cho Min, who is a student at Pusan National University Medical School, received scholarships for six semesters in a row totaling ₩12,000,000 since 2016, despite failing at least twice. (1:15)  There are seven students who received the scholarship since 2015, and six of them received the scholarship only once; Cho Min is the only one to receive the scholarship six times. (3:01)  The professor who gave her the scholarship said he told her if she did not give up studying, then he would give her a scholarship.  With Cho Kuk’s reported assets of ₩5.64 billion ($5.3 million) and savings of over ₩3.4 billion, her family is not likely to be considered need-based.  Her getting a scholarship under the circumstances was seen as favoritism as well as unfair since it took away scholarships that could have been given to those with financial needs or deserved them based on academic performance.  It can also be seen as bribery. Professor Rho Hwan-jung (노환중) who gave Cho Min the scholarship has since been appointed to a plum post as the director of the Busan Medical Center. (3:25) Professor Park Dong-yoon (박동윤), who gave failing grades to Cho Min no longer works at the University.

The controversy does not end there.  Cho Min was given credit as an author for a child pathology thesis during her 2-week internship at Dankuk University Medical School research center while a 10th grader in high school, which was published later when she was an 11th grader.   “eNos Gene Polymorphisms in Perinatal Hypoxic-Ischemic Encephalopathy” with multiple authors was published in a medical journal, The Korean Journal of Pathology in English in 2008.  The first paragraph begins with “Nitric Oxide (NO) is produced from the oxidation of L-arginine to L-citrulline by NO synthase (NOS).”  Cho Min’s name was listed as the first author, and all of the others (professors, Ph.D.s) followed after her name. The first place or even the second place are reserved for the principal researcher(s), which Cho Min was not.  Cho was a high school 10th grader during her internship, which was from July 23-August 3, 2007.  The clinical research for the theses, which involved withdrawing blood from premature babies, began in 2002 (13:05) and ended on June 30, 2007, prior to her beginning her internship.  This raises the question of how a high school 10th grader could write and publish a thesis that is difficult for even doctors to write, and in such a short time.  Additionally, it took away the “rights” from the authors of the thesis, who spent years on research and who need the first and second place authorships as a pre-requisites before taking exams to qualify as full-fledged pediatricians. (10:18)  Ironically, one of the classes Cho Min failed at the medical school was pathology. (3:15)

It turned out that the supervisor of Cho Min’s internship was Dr. Jang Young-pyo (장영표), who is the father of a student, who went to the same high school as Cho Min.  (27:03)

Apparently, the thesis was then used for Cho Kuk’s daughter’s acceptance into the elite Korea University, which was used in lieu of a college entrance exam.  She also did not take the Medical Education Eligibility Test (MEET) for the Pusan National University Medical School, which Cho Min personally admitted to by posting that she definitely will not be taking it. (14:08)   Since she lived abroad, she also gained entrance to an elite high school without taking an entrance exam. (1:55)

When Cho Kuk was the Senior Secretary for Civil Affairs and Justice at the Blue House, he inspected the Ministry of Education’s “minor (under-aged) co-authored thesis (미성년 공저자 논문조사)” case, which is highly unusual for his office to take on, rather than leaving it to the Ministry.  The opposition raised suspicions that Cho was monitoring to see whether his daughter’s thesis would be caught, since she was under-aged.  Minor co-authored thesis (미성년 공저자 논문조사) is illegal in South Korea, because some university professors registered their children as co-authors and used them for college entrance.  The thesis with Cho Min’s name was not discovered during the inspection, because Cho Min was listed not as a high school student from Hanyoung Foreign Language High School, but as a doctor (Ph.D.) working at the medical research center at Dankuk University. (11:35)

Numerous people are comparing Cho Kuk’s daughter Cho Min’s case with Choi Seo-won’s (Park Geun-hye’s friend) daughter Chung Yoo-ra.  Cho Min’s case overflows with corruption, bribery, and abuse of authority. In Chung Yoo-ra’s case, she was an athlete who won a gold medal in the Asian Games, and placed first in numerous other equestrian competitions.  For admitting Chung as a student and giving a graduation diploma to an accomplished national athlete, the Moon administration jailed Ehwa Women’s University Chancellor and several professors, deeming it to be favoritism.  Garoseoro Yeongooso, a YouTube program, emphasized that Chung won the gold medal and has been an equestrian for over a decade. (50:01)  This issue was used by the candlelight protest organizers as yet another justification to impeach Park Geun-hye.  There were others who were vocal in criticizing Chung’s case as preferential treatment, and Cho Kuk was one of the loudest critics.  Cho Kuk accused the Park administration of playing favoritism by posting on his Facebook on January 1, 2017, “Chung Yoo-ra, Park Geun-hye administration’s philosophy is ‘If you don’t have the capability, blame your parents. Don’t blame mine, who have [wealth].  Money is talent too.’” (0:41)

Cho Kuk’s hypocrisy and unethical behavior are causing quite a consternation in South Korea, especially among students.  In fact, the students at Korea University and Seoul National University held protests on August 23, 2019.

Cho posted on his FB (0:54):

We like the anecdote ‘a dragon rose from a stream,’ but as the rich-poor gap widens to 10%/90%, not everyone can be a dragon, nor is there such need…what’s more important is that even if one doesn’t become a dragon that flies through the clouds, we make a society in which one is happy as a carp, a frog, or a crawfish.  Don’t look to the sky and engage in bloody competition; put your efforts toward making a pretty and warm stream.

Essentially, he is telling people to not aspire to higher goals and do not try hard to succeed, but stay in the socio economic situation one is in. A Youtuber Pakman stated that Cho tells others to be a carp, a frog, and a crawfish and dwell at the bottom receiving government handouts, while Cho is a dragon and he and his family have a loan party with tax payers’ money, and shamelessly try to take the construction money by suing. (1:09)  Others argued that Cho wants everyone else to stay down, while he makes a “dragon” out of himself and his offspring.

Cho Kuk’s Son and Military Draft

A sensitive issue for any politician in South Korea is whether the candidates or their sons tried to avoid the military draft.  Cho Kuk’s son Cho Won has delayed the draft five times already.  Cho Won was born in the U.S. while Cho Kuk was studying at the Boalt Hall Law School, University of California (UC) at Berkeley, and thus is a dual U.S. and South Korean citizen.  Cho Won attended the George Washington University.

Cho’s Justice Minister Hearing Preparation Team said, Cho Won plans to go in the military next year.  If Cho Won, however, abandons his Korean citizenship and chooses U.S. citizenship only before the end of this year, he would not go in the military.

Senior Secretary for Civil Affairs and Justice

As mentioned earlier, the Senior Secretary for Civil Affairs and Justice is a position that oversees the bodies of investigative and prosecutorial authorities, such as the tax agency, the police, the prosecutors, and the courts.  For that reason, the position is usually filled by those with a legal background that passed the bar exam. Cho Kuk, however, did not pass the bar exam for judges.

The UC Berkeley law center wrote about its alum:  “Cho will be responsible for combating corruption among high-ranking government officials and reforming the prosecutor’s office. The role is particularly significant in the wake of the impeachment of President Park Geun Hye for corruption. The appointment of Cho, one of the most well-known legal scholars in Korea, drew particular attention in the South Korean media because his position is traditionally held by senior prosecutors. Moon’s decision to appoint Cho reflects a commitment to an anti-corruption program.”

[Note: It is widely, and falsely, believed that President Park Geun-hye was impeached for corruption. See here for more information on her impeachment.]

The expectation was that Cho will be spearheading the anti-corruption campaign, which the Moon administration named “Jeokpae Cheongsan.”

In addition to the two former presidents Park Geun-hye and Lee Myoung-bak, also jailed include former officials of the Park and Lee administrations:  National Security Advisor Kim Kwan-jin (김관진) (said to be feared the most by North Korea), former Minister of Defense Kim Jang-soo (김장수),  former NIS Director Won Sei-hoon (원세훈), and former NIS Director Nam Jae-joon (남재준). However, the term “Jeokpae Cheongsan” was a convenient cover for investigating, harassing, jailing, and bankrupting political opponents, not because they committed crimes backed by evidence, but because they stood in the way of the Moon administration’s vision for South Korea–a socialist country united with North Korea and oriented toward China.

Whistleblowers Kim Tae-woo

Cho Kuk, along with Im Jong-seok, were senior figures in the Blue House.  It appeared they gave illegal orders and when the whistleblowers exposed them, then they retributed.  There was no investigations regarding the accusations by Kim Tae-woo and Shin Jae-min, both junior level civil servants.

In December 2018, then Inspector Kim Tae-woo (김태우) exposed that the Republic of Korea (ROK) ambassador to Russia, Woo Yoon-keun (우윤근), received ₩10 million ($7,500) from Mr. Jang, a builder, in April 2009 as a bribe to provide a job for Mr. Jang’s nephew at POSCO Construction, but Woo returned the money in 2016 prior to the upcoming general election.   Kim Tae-woo, a prosecutor (6th level, mid-level civil servant), was seconded to the Special Inspection team, Anti-Corruption Inspection office, which was under Cho Kuk’s Civil Affairs and Justice Secretariat. Kim sent a report on this issue up his leadership chain–Park Hyung Chul (박형철) (the chief of the Anti-Corruption office”, then to Cho Kuk (Senior Secretary for Civil Affairs and Justice), and then to Im Jong-seok (임종석).  Im Jong-seok has denied he received the report, but Woo said that he received a phone call from Im Jong-seok regarding the issue, according to SBS.

Instead of investigating Woo Yun-kun, the Blue House named Woo as the Ambassador to Russia.

Another issue that Kim exposed was the Blue House’s surveillance of people, including civilians.  When the Blue House denied it, Kim Tae-woo provided to the Chosun Ilbo the reports that he prepared and reported to the senior leadership.  According to Kim, the file contained a large number of reports unrelated to the task of the special investigation task force.  They include “the status of the former prime minister’s son’s business, the opinions of each ministry/department on the constitutional changes, and the private bank presidents’ opinions. The former prime minister or private bank presidents are non-public officials and as such, are not subject to the special inspection by the task force, and monitoring other government entities also falls outside of their purview.”

Cho Kuk defended the Ministry of Environment creating documents on its affiliated organization’s executives’ thoughts and activities (to see which way politically they were leaning), including their personal weaknesses and partial implementation of the Black List.  Cho said the documents were reference materials and said the Ministry’s activities were legal at a National Assembly hearing on December 31, 2018.

The Blue House also investigated the Foreign Ministry over ten times since the Moon administration began.  The Blue House was suspicious of the Foreign Ministry for leaks, after the press reported various issues, including these topics:

• Since the presidential plane has been to Pyongyang, South Korea needs to go through the U.S. government sanctions exemption process to go to the United States.
• At the end of 2017, the government negotiated with China to establish the ‘3 No’s Principle,’  which included “no consideration of additional THAAD deployments”

The Foreign Ministry officials had to provide their work and personal mobile phones to the investigators.  On January 7, 2019, Cho Kuk stated that “Procedures taken with the consent of the parties,” but the legal professionals said Cho Kuk’s “claims are not based on legal principles and there are many illegalities.”

Cho Kuk claimed that Kim Tae-woo’s statements were false, stating “Launched by the “Gukjeong Nongdan” [has been used to mean interference in the affairs of the state and a justification for impeaching President Park Geun-hye; see here] incident experience, the Moon administration’s’ Senior Secretariat for Civil Affair have conducted all duties in accordance with the law and principles.”  Kim Tae-woo retorted by saying everything Cho Kuk said, including the claims that Kim was warned not to monitor people, were lies, asking that if he were warned, could he really have written the reports for 16 months, and even receive a bonus for performing the job well.  (0:43)

The Blue House returned Kim Tae-woo to the Prosecutor-General’s office and shortly after, began investigating Kim Tae-woo.  This appears to be retribution for his whistleblowing.

Whistleblower Shin Jae-min

Around the same time period in December 2018, a junior civil servant (Level 5), Shin Jae-min explained on YouTube why he left the Ministry of Economy and Finance (MOEF).  He proceeded to explain that he was the one who provided information to broadcaster MBC about the current administration trying to change the CEO of KT&G [Korea Alcohol & Tobacco company] that was aired in May 2019.  (1:37) Shin said that the administration glossed over it as a document prepared by a working level official, but in reality, it was reported up to the Vice Minister of MOEF.  (1:45) Further, Shin stated that the instructions to change the KT&G president came from the Blue House.  (2:07) Moon has replaced presidents of numerous public enterprises, and that had become an issue.  What Shin saw as the bigger problem is that the Blue House reaching out to private enterprises, which KT&G is, to change the CEO is like trying to change the CEOs of LG or Samsung.  (3:14) This act was contrary to what the administration said it would not do, and Shin expressed his great disappointment.

Shin also exposed that the Blue House pressured MOEF to issue ₩4 trillion ($3.6 billion) in additional bonds, despite the opposition from MOEF as well as canceling early repayment of bids, and claimed that it was done to make 2017 government debt seem higher.

Shin said the National Assembly approved a maximum of  ₩28.7 trillion won (~$25.8 billion) in deficit government bonds for 2017, and he calculated in late June, he expected the 2017 revenue to exceed  ₩20 trillion (~$18 billion). Shin stated “We already issued a total of ₩20 trillion (~$18 billion) worth of government bonds, so we thought that the remaining ₩8.7 trillion won [of bonds authorized by the National Assembly] was not to be issued.”  The tax revenue was stabilized then, so the issuance was not needed.

On November 14, 2017, the Deputy Prime Minister for Economy as well as the Minister of Economy & Finance at that time Kim Dong-yeon ordered the cancellation of the ₩1 trillion won (~$900 million) early repayment bid scheduled for the next day (15th), according to Shin.

The Park Geun-hye administration technically ended in early 2017 and Moon administration began in May 2017.  By issuing unnecessary debt in 2017, the higher debt for the year could also be attributed to the Park administration. The Moon administration has increased government spending and deficit spending dramatically since its inception.

Due to the Blue House scandals regarding the above from both Kim Tae-woo and Shin Jae-min’s whistleblowing, Cho Kuk and Im Jong-seok appeared at a hearing at the National Assembly on December 31, 2018, but nothing came out from the hearing.  Cho and Im used the occasion to portray Shin as someone not to take seriously.

As happened to Kim Tae-woo, Shin ended up being investigated by the government.  Shin asked for legal protection for his whistleblowing at a press conference on January 2, 2019.  The next day on the 3rd, the topic of Shin potentially committing suicide filled the news in the morning, and by the afternoon, the topics of the police finding Shin alive at a motel filled the news.  Apparently, Shin was taken to a hospital, but no one seems to know what happened to him since.

Libel Lawsuits against Citizens

Cho Kuk joins Moon Jae-in and Im Jong-seok in suing citizens for libel.  Moon sued Koh Yong-ju for libel for calling him a “communist.” (see here and here for more.)   Im sued Dr. Ji Man-won for calling him a “jusapa” and “communist.”  (see here for more.)  Cho sued a veteran journalist Woo Jong-chang for libel as well.  It appears Cho Kuk did not like the content of a YouTube video.

After receiving a tip off, Woo Jong-chang asked if Cho Kuk met and had dinner with Kim Se-yoon (김세윤), Seoul Central Court District Court judge in January or February 2018, which was prior to the initial court decision date of April 1, 2018 for Park Geun-hye’s criminal trial that followed the impeachment trial.  Woo sent letters asking if they met to the Blue House and to Judge Kim, but receive no replies. (4:40)  If the meeting occurred, it is inappropriate and raises the question of any Blue House influence on the case.

Another libel case involves Cho Kuk’s daughter Cho Min.  In the course of discussing Cho Min, whose photo with a red car in the background appeared on social media, some have said that Cho Min’s car was a Porsche.  The photo does not show the entire car, so it is hard to tell. Cho Min not only denied that it was a Porsche, but promptly labeled it fake news and sued those who made the statement.

Cho Kuk apparently filed more libel law suits beyond these.

Cho Kuk’s Anti-Japan Facebook posts

Cho Kuk was one of the numerous officials in the Blue House and the ruling party to incite anti-Japan sentiment recently, and posted more than 50 comments on his Facebook.  Cho Kuk described Japan’s announcement of removing South Korea from its white list as “an economic war” and strongly criticized those who said the situation is due to nationalism in both countries. He rejected the idea that both countries are at fault, stating “a foreign country has invaded, but to say ‘our country also was at fault’ and the cynicism against the boycott (of Japan) is the modern day version of disparaging the militias and the national independence forces (both against Japan during the Japanese occupation).”

Cho has also used provocative terms like “jookchang” (“bamboo spears” used in the past to pierce/kill people), chin-il (pro-Japan; has negative connotation), and ijeok (helping the enemy) regarding the situation with Japan on his Facebook.  Cho also stated Japan’s economy will suffer more.  The opposition parties and many South Koreans criticized Cho Kuk’s anti-Japan rhetoric.

Cho Kook, the Polifessor (Politician + Professor)

“Polifessor” has a negative connotation to describe professors who go into politics or become so political that they forget their primary role as professors.  While at Seoul National University as a law professor, Cho Kook had criticized “polifessors” and implored them to resign.  On the Seoul National University online community, the students are also calling for “polifessor” Cho Kook to resign, stating “Professor Cho Kuk, aren’t you gone too long?”…“You have to give an opportunity to junior professors (by opening up his position)”…“Other professors suffer because the professor who teaches compulsory class is gone.”

Truth Forum, a student organization, asked him not to return as professor, pointing out Cho Kuk’s past criticism of polifessors.  The students pointed out that Cho Kuk has too narrow and dangerous a view of history to be an educator. They said it is exasperating to see Cho Kuk, who has a Sanomaeng (Socialist Workers League of Korea) background, stirring up anti-Japan sentiment as he labels “pro-Japan” anyone who has a different view from him on the Treaty on Basic Relations between Japan and the Republic of Korea, viewing Republic of Korea as an illegal country borne by pro-Japan Koreans “mooching” from the U.S., and looking at capitalism as a system in which 1% exploits 99%.(2)  Truth Forum stated it is astonishing to think about what kind of impact Cho, with a view like that, had on young students.

Meanwhile, Cho Kuk received a full month’s salary for August.  He faxed his intent to return to his professorship at Seoul National University on August 1, 2019 after he resigned as the Senior Secretary for Civil Affairs and Justice.  On August 9, Cho was nominated by Moon as the Justice Minister and began a hearing preparation.

Plagiarism

Cho Kuk’s daughter placing her name on essentially someone else’s research is the kind of behavior that may have been learned or condoned by her father.  Cho Kuk has been accused of plagiarising his thesis for his master’s degree at Yonsei University Law School as well as at the Boalt Hall Law School at UC Berkeley.

In 1989, Cho Kuk turned in his master’s thesis titled “A Study on the Formation and Development of Soviet Socialist Law and Criminal Theory:  1917-1938 (소비에트 사회주의 법·형법 이론의 형성과 전개에 관한 연구: 1917~1938).” Seoul National University Research Integrity Verification Committee concluded in 2013 that they found 59 instances, where the wording matched those in the translated books, but were not cited.

Public Response

There has been a severe public lash back against Cho Kuk in the past couple of weeks.  The students at Korea University (where Cho Kuk’s daughter Cho Min attended) and Seoul National University (where Cho Kuk is a law professor) held candlelight protest to demand Cho Kuk remove himself as the nominee for the Justice Minister and to investigate Cho Min’s suspicious college entrance situation. 

The original organizer of the protest at Korea University withdrew his role as the organizer after he was threatened, stating “As someone who will have to take the bar exam administered by the Ministry of Justice and to receive a law degree in the future, I learned how terrifyingly one can be threatened for publicly raising the issue of the Minister of Justice candidate’s daughter.”  He said he desperately hoped that the candlelight protest would occur, and it did.

Call for Cho Kuk to remove himself as the candidate occurred elsewhere as well.  Former Gyeonggi Province Governor Kim Moon-soo and concerned citizens gathered in front of the Blue House on August 26, 2019 to call for Cho Kuk to step down.  Some held placards that show “Opportunity is to Cho Kuk, the Process is also to Cho Kuk, the Result is to Cho Kuk. Is this the Country (that we want)?”  Kim also called for special prosecution to investigate Cho Kuk’s case.

The poll published on August 23, 2019 also showed that twice as many people oppose Cho Kuk to be the Justice Minister:  60.2% opposed while 27.2% supported.

There were numerous calls for Cho Kuk to be investigated, and not go through the confirmation hearing.  It was announced, however, that the parties at the National Assembly negotiated to hold a hearing for the Justice Minister candidate Cho Kuk on September 2 and 3, 2019.

Cho Kuk’s response

As the controversy becomes more heated, Cho responded initially by labeling news about his various unethical, improper, and illegal activities as “fake news.”  His daughter also sued those who claimed she drove a red Porsche, when a photo of her with a red sporty car in the background circulated social media, claiming it as “fake news.”  However, the public sentiment is turning against him, as news of his corruption pours out continuously. On August 23, 2019, he stated he will donate the private equity fund and Woongdong Academy to the public.  Immediately, criticism followed, because there was no indication that he acknowledges what he did was wrong, among numerous other reasons.

Despite the public outcry, it appears Cho Kuk has no intention to withdraw his name.  He stated “I can’t let go of the burden on my shoulders, even though I and my family are suffering,” adding “Every effort will be made to complete the reform mission of the Moon Jae-in administration.”

The Blue House announced on August 25 that Moon Jae-in will be out of country September 1-6, as he will visit Thailand, Burma, and Laos.  People are criticizing him for going out of country when there is so much controversy over his Justice Minister designee Cho Kuk, while others wondered if that is so that he can electronically sign Cho’s confirmation. (53:55)  Moon has a history of electronically signing controversial items, such as proposing changes to the Constitution while he was visiting the UAE and Vietnam in June 2018, appointing judge Lee Mi-seon (이미선), who was mired in insider information controversy to the Supreme Court while he was visiting Uzbekistan in April 2019, and giving an order to form an investigative team to investigate Defense Security Command while he was visiting India in July 2018.

Conclusion

Despite the uncovering of massive corruption, Cho Kuk has thus far refused to remove himself as the Justice Minister nominee.  Yet more controversies are uncovered everyday. Instead, Cho has called the news about the scandal, including private equity fund, Woongdong Academy, and his daughter, as “fake news” and filed lawsuits.  The ruling Deobureo Minjoo Party (Democratic Party of Korea) and the Blue House have been defending Cho, despite all the controversies. Talks of Cho running for president in 2022 already surfaced. Justice Minister is another stepping stone.  The link betweenCho Kuk and China’s Communist Party’s funding through the Co-Link Private Equity firm is also an issue. Is someone who has no remorse about his efforts and beliefs about overthrowing South Korea’s liberal democracy and market economy, and who has violated laws in name and in spirit, really fit for the highest legal authority in the country? Many South Koreans think not, but Moon Jae-in has a track record of pushing through and appointing those he designates, even after their unethical and illegal activities surface.  If Cho is appointed, he would continue Moon’s “reform,” which means pushing South Korea down the path toward socialism and aligning itself away from the U.S. and Japan and with China and North Korea. The Cho Kuk scandal could, however, be a catalyst for turning the public sentiment against the Moon administration as a whole.

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References (not including hyperlinked ones)

• (1) Republic of Korea Ministry of Government Legislation, Inheritance Tax and Gift Tax Act,  last amended December 26, 2008, p. 25.
• (2) Truth Forum-SNU, “Professor Cho Kuk, just keep doing politics.” Facebook, August 2, 2019