100 billion won fraud charges against Kang Young-kwon, former chairman of Edison Motors, have been dismissed.
According to legal sources on September 16, the Seoul High Court's Criminal Division 14-2, presided over by judges Lee Hyun-woo, Jeong Kyung-geun, and Lee Hyung-geun, upheld the not guilty verdict for Kang, who faced charges of violating the Specific Economic Crimes Act (fraud), similar to the first trial. A former director of Edison Motors, Cha, who was also indicted, was acquitted.
The ruling was finalized on August 21 after the prosecution chose not to appeal.
Kang and others were accused of defrauding a total of 10 billion won from the Small and Medium Business Corporation and venture capital firms between 2018 and 2022 under the pretense of launching electric trucks and developing new motors.
The first trial found them not guilty, stating, "Edison Motors had been planning mass production of electric trucks since around 2017 and had made concrete efforts to secure the market by collaborating with a Chinese company possessing relevant technology. The estimated sales figures and revenue projections could vary due to various future circumstances, so failing to achieve them does not necessarily indicate fraud."
The court further explained, "There is no evidence of deceptive conduct, and considering the defendants' actions and the progress of the business, it is difficult to establish intent to deceive."
The second trial also deemed the original ruling valid and rejected the prosecution's appeal.
Meanwhile, Kang is separately facing charges for allegedly inflating Edison Motors' stock price through false disclosures while pursuing the acquisition of Ssangyong Motor, resulting in a profit of 162.1 billion won. He received a three-year prison sentence in the first trial and is currently appealing.
* This article has been translated by AI.
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