▲ Former Edison Motors Chairman Kang Young-kwon
Kang Young-kwon, the former chairman of Edison Motors who was indicted on charges of fraudulently securing 10 billion won in loans and investments, has been finally acquitted.
On August 13, Criminal Division 14-2 of the Seoul High Court (High Court Judges Lee Hyun-woo, Jung Kyeong-keun, and Lee Hyeong-geun) sentenced the former chairman to acquittal on charges of fraud under the Act on the Aggravated Punishment, etc. of Specific Economic Crimes, following the first instance.
Cha, a former director at Edison Motors who was indicted along with him, was also acquitted.
As the prosecutors did not appeal, the ruling was finalized as is on August 21.
The two were brought to trial on charges of siphoning off a total of 10 billion won under the guise of loans and investments from the Korea SMEs and Startups Agency and venture capital firms between 2018 and 2022 by promoting the launch of electric trucks and the development of new motors.
However, in October 2024, the first-instance court acquitted them, ruling that the businesses they pursued could not be considered fraudulent.
The first-instance court stated, "Edison Motors had planned the mass production of electric trucks around 2017 and made concrete efforts to preempt the market, such as collaborating with a Chinese company possessing relevant technologies to carry out development." It added, "Projected sales volumes or revenue estimates can vary depending on various circumstances that may arise in the future, and the mere failure to actually achieve them does not allow for the conclusion that they were false."
Regarding the development of the new motor, the court also judged that it was difficult to view it as false, noting that Edison Motors continued its efforts toward commercialization and achieved significant results, albeit with some delays.
The first instance added, "Since deceptive acts are not recognized, and given the defendants' actions and the progress of the business, it is also difficult to recognize intent."
The appellate court also deemed the original judgment valid and dismissed the prosecution's appeal.
Meanwhile, in a separate case, the former chairman was indicted on charges of reaping 162.1 billion won in market profits by inflating Edison Motors' stock price through positive news such as pursuing the acquisition of SsangYong Motor and false disclosures. He was sentenced to three years in prison in the first instance and is currently undergoing an appellate trial.
(Photo provided by Edison Motors, Yonhap News)
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