High Court acquits sitting, former lawmakers in SOGO corruption case

Taipei, Aug. 21 (CNA) The Taiwan High Court on Friday overturned the convictions of incumbent Kuomintang (KMT) Legislator Chen Chao-ming (陳超明) and former New Power Party Legislator Hsu Yung-ming (徐永明) in a corruption case involving the ownership of the Pacific SOGO department store chain, acquitting both.

In the same case, the court rejected appeals filed by former Democratic Progressive Party Legislator Su Chen-ching (蘇震清) and former KMT Legislator Liao Kuo-tung (廖國棟), upholding their prison sentences of 10 years and eight years and six months, respectively.

The ruling can be appealed.

The case also involved several others, including Chen's office director Liang Wen-i (梁文一) and former Pacific Distribution Investment Co. Chairman Lee Heng-lung (李恒隆), with the High Court either upholding or overturning their guilty verdicts.

The reasons for the High Court's decisions were not immediately available as of press time.

According to prosecutors, Lee allegedly made a series of payments to Chen, Hsu, Su, Liao and others beginning as early as 2012, asking them to use their influence to help him regain ownership of Pacific SOGO, one of Taiwan's most profitable department store chains.

Lee has been engaged in a legal battle with Far Eastern Group Chairman Douglas Hsu (徐旭東) over ownership of SOGO since the early 2000s.

Prosecutors alleged that bribes paid to the lawmakers around 2013 were intended to pressure the Ministry of Economic Affairs (MOEA) to amend provisions of the Company Act governing capital increases and apply the changes retroactively, which would have helped Lee's company retain control of Pacific SOGO.

In 2019, Lee sold some of his shares in Pacific Distribution Investment Co. to a new company in order to continue pursuing ownership of the department store under the new company's name.

Prosecutors said lawmakers subsequently received money from Lee to pressure the MOEA on his behalf, including by holding a series of public hearings in December 2019 aimed at pushing the ministry to amend the Company Act in a way that would help Lee's case.

Su was believed to have received the largest amount in bribes, totaling NT$25.8 million (US$809,972).

Those involved were investigated and indicted in 2020 on charges of violating the Anti-Corruption Act and other laws.

In 2022, the Taipei District Court sentenced Su to 10 years in prison and Liao to eight years and six months.

Chen and Hsu were sentenced to seven years and eight months and seven years and four months, respectively.