Roh Tae-woo's 30 billion won slush fund mystery highlights need for independent confiscation

Jul 28, 2026, 10:18 am

The 9-year property division lawsuit between SK Group Chairman Chey Tae-won and Art Center Nabi Director Soh Young-hee concluded with an order to pay 94.4 billion won in property division. However, as the court ultimately failed to rule on former President Roh Tae-woo's 30 billion won slush fund, the need to introduce an independent confiscation system is surfacing once again.

The court included SK shares held by Chairman Chey in the property subject to division and set the reference date for valuing the shares as the closing date of arguments in the appellate trial of the divorce lawsuit. This was on the grounds that although Director Soh's involvement in housework and child-rearing contributed to the increase in value of the held shares, Chairman Chey's managerial contribution influenced the significant rise in SK share prices between the closing date of arguments in the appellate trial and the closing date of arguments in the remand trial.

Regarding former President Roh's slush fund, the court merely ruled, "In accordance with the Supreme Court's remand decision, it shall not be considered as Director Soh's contribution to the formation or maintenance of value of the shares held by Chairman Chey, nor shall it be considered in determining the property division ratio." Earlier, when returning the case to the Seoul High Court in October last year, the Supreme Court also judged that since the slush fund was illegal funds, even if delivered to SK, it could not be considered as Director Soh's contribution to property division.

The reason the Supreme Court did not determine the existence of the slush fund is that it is a court of law that examines only the legal issues of the lower court. Under the purpose of the Supreme Court's remand, there was little legal need for the remand trial court to separately examine the entity of the slush fund. However, as the entity of the slush fund was ultimately not revealed even in the remand trial court, which is a court of fact that examines factual relations, the possibility of the court examining the existence of the slush fund again has virtually disappeared.

An analysis suggests that separate criminal proceedings are inevitable to directly address this. However, this also faces other problems, such as the death of former President Roh and others who are direct parties involved, and the expiration of the statute of limitations as the timing of the slush fund delivery preceded the enactment of the Act on Regulation and Punishment of Concealment of Criminal Proceeds.

Ultimately, there is an urgent need to introduce an independent confiscation system that allows criminal proceeds to be confiscated and collected without a guilty verdict, even if prosecution is difficult due to reasons such as the offender's death or unknown whereabouts. The independent confiscation system passed the National Assembly's Legislation and Judiciary Committee last April, but it has yet to cross the threshold of the plenary session.

In this case, Mrs. Kim Ok-sook's so-called Sunkyung 300 Billion Won note and promissory notes, which can support the existence of the slush fund, have already been submitted to the court. Nevertheless, if former President Roh's illegal money is confirmed yet not recovered, the arrow of responsibility will inevitably point to the court, which must punish power-based corruption crimes.

Son Seung-hyun

#Roh Tae-woo