How did the encouragement fund turn into a bribe?

The owner of a large coffee franchise located at the Gwangju-Kia Champions Field, Mr. Kim, is a self-made entrepreneur. He manages one of the country's leading real estate development corporations. His hometown is Iksan, North Jeolla Province. Like most people from Honam at the time, he was enthusiastic about high school baseball teams such as Gwangju Ilgo and Gunsan Sanggo and naturally became a fan of the Tigers. Even now, he rushes to any Tigers game held across the country.

In mid-2022, Mr. Kim began interactions with coach Kim Jong-guk through an introduction from an acquaintance. When the team went on away games in the metropolitan area, he supported the coffee shop with beverages and bakery items. As a show of support, he visited Incheon Munhak Stadium and handed coach Kim 60 million won under the guise of encouragement funds. In October of that year, when the team advanced to the wild card decision playing as fifth place, he brought another 100 million won as congratulations to the first game held at Suwon Stadium against the KT Wiz. Director General Jang Jung-seok was also present at that occasion.

Wanting to support the Tigers, the owner signed a formal sponsorship contract for the team’s uniform shoulder advertisements at the introduction of coach Kim. Until then, the team had been unable to secure a shoulder advertisement sponsor. Later, he expanded the contract to include fence advertisements. It was one of the highest contracts among the ten teams. For the players, he installed a home run zone and selected an MVP every week for hitting, pitching, and defense, giving out prize money.

Suddenly, shocking news broke at the end of January last year, just before the departure for spring camp. The prosecution summoned coach Kim and former Director General Jang on suspicion of having received bribes in exchange for advertising contracts from the team. During the investigation into former Director General Jang for demanding back-door money from catcher Park Dong-won, the prosecution discovered tens of millions of won of unexplained funds in his accounts. The investigation also expanded to former coach Kim, who had been very close to him, and substantial amounts were also found in his possession.

It was money that owner Mr. Kim had given as encouragement funds. The two had kept this money instead of distributing it to the team. The prosecution charged former coach Kim and former Director General Jang with embezzlement, while Mr. Kim, who handed over the money, was charged with aiding and abetting embezzlement. They argued in court that it was nothing more than simple encouragement funds given for the motivation of the players and that the structure of professional baseball team sponsorship advertising was not done through solicitation.

Such claims were accepted by the trial court in both the first and second trials. On Oct. 4 of last year, in the first trial, the Seoul Central District Court acquitted former Director General Jang, former coach Kim, and Mr. Kim, the defendants. The prosecution appealed, and the trial was again held, resulting in another acquittal on the 29th at the Seoul High Court’s Criminal Division 13. The court determined that considering the nature of the money Mr. Kim provided and the circumstances of receipt, it was highly likely it was given as encouragement for the KIA team.

It was concluded that Mr. Kim had no reason to give money to former Director General Jang and former coach Kim for solicitation. If former coach Kim and former Director General Jang had received the encouragement funds and given them to the team, there would have been no need for them to stand trial. Former coach Kim was dismissed and later returned the money to Mr. Kim, realizing his mistakes. After a lengthy court battle, he received an acquittal, but due to a momentary misjudgment, those involved lost a lot.

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