Former Gyeonggi Province Peace Vice Governor Sentenced to 7 Years and 8 Months for Illegal North Korean Remittances

On June 5, 2025, Lee Hwa-young, the former Vice Governor of Peace in Gyeonggi Province, received a confirmed sentence of 7 years and 8 months in prison from the Supreme Court for his involvement in the 'illegal remittance to North Korea' case. The court upheld findings from previous trials that confirmed the involvement of Lee and the company, Ssangbangwool, in covering the costs of President Lee Jae-myung's visit to North Korea. Legal experts suggest that this ruling may impact the ongoing trial of President Lee, who has also been indicted as a co-conspirator in the North Korean remittance case. However, the Democratic Party is currently pushing for a 'trial suspension law' that would halt criminal proceedings against a sitting president, leaving the future of the trial uncertain.

The Supreme Court's second division, led by Justice Park Young-jae, confirmed the lower court's ruling, which included a fine of 250 million won and a forfeiture of approximately 325.95 million won. Lee was accused of having former Ssangbangwool Chairman Kim Seong-tae pay a total of 8 million dollars, which included 5 million dollars for a 'North Korean smart farm improvement' project and 3 million dollars for President Lee's travel expenses to North Korea during his tenure as Gyeonggi Province Governor in 2019.

Both the first and second trials, as well as the Supreme Court, acknowledged that 800,000 dollars were remitted to North Korea, with 394,000 dollars being classified as violations of foreign exchange laws due to unauthorized transfers, including 164,000 dollars for the smart farm project and 230,000 dollars for travel expenses. The remaining 406,000 dollars was ruled as not proven to be a crime. Notably, the court found that 200,000 dollars of the travel expenses were delivered to the Workers' Party of Korea.

Additionally, the court recognized Lee's guilt in receiving bribes and illegal political funds amounting to approximately 320 million won from Ssangbangwool. Claims made by Lee that the prosecution manipulated the case were dismissed by the court.

President Lee Jae-myung has been undergoing a first trial at Suwon District Court since June of last year, facing charges of 'third-party bribery' related to this case. He is accused of facilitating North Korean business dealings at the request of Ssangbangwool, which allegedly led to the covering of travel expenses through Lee Hwa-young. A current judge noted that since the Supreme Court has confirmed the illegal remittance to North Korea, the determination of whether there was collusion between President Lee and Lee Hwa-young will be crucial in deciding guilt or innocence.

Previously, Lee Hwa-young had testified in June 2023 that he reported the payment of travel expenses to Governor Lee Jae-myung, but later recanted this statement in court, claiming it was coerced by the prosecution. However, the first trial's ruling indicated that Lee had strong motives to promote the governor's visit and that he had repeatedly stated he informed the governor about the arrangements, which supports suspicions of President Lee's involvement in the remittance. The court did not make a separate judgment on whether Lee Hwa-young reported directly to President Lee.

The case against President Lee has yet to see a formal trial despite being over a year since the indictment. The proceedings have been stalled for over three months due to a request from President Lee's side to disqualify the judge, and further delays occurred with a change in the judicial panel at the beginning of this year.

A preparatory hearing is scheduled for July 22, but it remains uncertain whether the trial will proceed. The trial suspension law proposed by the Democratic Party has passed the National Assembly's Legislative and Judiciary Committee and is awaiting a vote in the plenary session. If the amendment passes, it is likely that the trial regarding the North Korean remittance case will not occur during President Lee's term.