By Kim Rahn
Staff Reporter
Former KBS President Jung Yun-joo was indicted Wednesday for breach of trust, charged with causing 189 billion won in losses to the network by dropping a lawsuit in which the company sought a corporate tax refund.
Hours after the indictment, the Seoul Administrative Court rejected Jung's request to suspend President Lee Myung-bak's dismissal decision.
``(The court) does not see a need to take an emergency step to prevent any irrecoverable damage from the dismissal of Jung,'' judge Jeong Hyeong-sik said in the ruling. It said it is ``in a situation where it cannot clearly say that President Lee's endorsement of dismissal constitutes a breach of the law.''
Jung's lawyers said they would appeal.
In January 2006, KBS settled with the National Tax Service on a refund of 50 billion won, though it had a chance of winning a larger amount. Prosecutors say Jung dropped the suit to use the refund to make up for a company deficit he caused due to mismanagement.
Since the probe began in May, Jung has refused five summonses for questioning. He was taken into custody last week and let go after 40 hours of questioning.
Jung's attorneys said that if he committed breach of trust, prosecutors must investigate the tax authority, the high court, KBS financial advisers and certain law firms, calling them all accomplices.
The court battle is expected to focus on if Jung dropped the suit to make up for the deficit as prosecutors claim or for other managerial reasons. His attorneys say the decision to drop the suit was made with the agreement of the KBS board of directors, financial advisers and auditors, and not at Jung's discretion.
If the charge is proven, a court will also set the amount of losses Jung caused KBS. Under law, those who cause losses of more than five billion won ($5 million) face a minimum of five years in prison.
The KBS board recommended Jung's dismissal to the President, who accepted this.
Jung has said that President Lee had no right to fire him under a law revision in 1999, which stipulated the chief executive had the right to appoint the network's chief only. He said the revision got rid of the dismissal right to secure KBS independence, while the government said the appointment right includes that of dismissal.
The law stipulated the appointment right only between 1972 and 1985, included both rights after a revision until 1999, and now carries only the appointment right since a second revision in 1999.
rahnita@koreatimes.co.kr
