Seoul Chinese Restaurant Owner in 'Secret Police Station' Probe Gets Suspended Sentence for Tax Evasion

Society|
|
By Kim Su-Ho
|

The actual owner of Dongbangmyeongju, a Chinese restaurant in Seoul suspected of being a base for China's "secret police station" in Korea, has been given a suspended prison sentence in the first trial.

Judge Ku Chang-gyu of the Seoul Central District Court's 12th Criminal Division on Thursday sentenced Wang Haijun, 47, to six months in prison with a two-year suspension for violations of the Food Sanitation Act and the Specialized Credit Finance Business Act. His spouse, identified only by surname Lim, 46, who was also indicted, was fined 2 million won. The couple is accused of processing payments for a restaurant operated by Lim under the name of Dongbangmyeongju.

The court found Wang guilty of lending his credit card merchant account to Lim, and Lim guilty of conducting transactions using another person's credit card merchant name.

Wang claimed he did not actually operate Dongbangmyeongju and was not involved in lending the merchant account. However, the court rejected this argument, ruling that Wang should be considered the actual operator based on his role at Dongbangmyeongju at the time. Wang was also charged with evading customs duties through false declarations.

However, the court acquitted Wang of charges that he continued operating the restaurant without filing a new business registration after the original permit expired, in violation of the Food Sanitation Act. The court ruled that "business registration under the Food Sanitation Act is a bound administrative act that cannot be subject to a time limit."

Regarding charges of installing large rooftop signs and electronic billboards in an urban green zone without district office permission, the court dismissed the case. The court explained that considering the crime is established at the time of installation of outdoor advertisements, the prosecution was filed after the statute of limitations had expired.

Dongbangmyeongju had been suspected of being a secret police station established by China in Korea to repatriate dissidents to the mainland. When the controversy arose, Wang was indicted for displaying messages on the electronic billboard in December 2022, including "Corrupt companies are controlling public opinion with money and mocking Korean citizens" and "Pro-US forces vs Pro-China forces."

In addition, the court fined the restaurant corporation operated by Lim 1 million won and Corporation A, which was involved in Wang's customs duty evasion, 5 million won.

Original reporting by Kim Su-Ho for Seoul Economic Daily.

AI-translated from Korean. Quotes from foreign sources are based on Korean-language reports and may not reflect exact original wording.

Watch · Seoul Economic Daily

More →
2:32

AI KEY

Preview
Korean Corporate Intelligence HubKOSPI · KOSDAQ · 12 sectors

A live, cap-weighted view of every KOSPI and KOSDAQ sector, with same-day Korean reporting distilled by company — built for foreign investors, correspondents and analysts who need to scan Korea before the next session.

Korea Company Atlas

Preview
Market Ontology · The Feedback LoopKFTC 2025 · 92 groups · 121,954 articles

An English ontology of the Korean market — how companies, the media, the government and the National Assembly move each other in a loop. Korea's named controlling persons and designated business groups are a mechanism, not a risk to be priced blind.

SIGNAL

Pre-register
English Edition · Capital MarketsM&A · IPO · PE · Fund Flows

Pre-register for SIGNAL English Edition — a premium subscription bringing Korean capital markets coverage (M&A, IPOs, private equity, fund flows) to global institutional investors. First access to the 50% introductory rate.