Ructions within Auckland’s Korean community continue with journalist Steve Lee, owner of weekly Korean-language newspaper The New Zealand Sunday Times, ordered to pay $150,000 damages for defaming local identity Henry Lee over motives behind a rescue operation mounted to finance purchase of a building in Argus Place, Glenfield, for use as a Korean cultural centre.
A 2015 investigation by Internal Affairs censured the Korean Society of Auckland Incorporated for breaching its own rules by raising a loan to buy the cultural centre without first getting the required two-thirds majority approval at a meeting of members and for abusing its charitable status by funding golfer Lydia Ko. Charity funding is to be used for society generally, not channelled to individuals.
The Korean Society signed up to buy Argus Place in 2013 for $1.5 million. The Korean government agreed to commit $150,000, payable once at least $750,000 has been raised for the purchase. With settlement date looming, there were serious concerns about loss of face when fundraising looked to be some $423,000 short. The High Court was told committee member Sung Hyuk Kim came to the rescue, on conditions. His advance of $423,000 would be interest free for two months; then two further members, one being Mr Henry Lee, would compensate him for any shortfall not covered by further fundraising such that between them each would bear one third of the deficiency. The fundraising deal was not made public. Mr Kim was to later sue Mr Henry Lee for his promised contribution.
The High Court was told Mr Steve Lee printed in a March 2015 edition of The New Zealand Sunday Times a detailed editorial condemning the deal. He alleged Mr Henry Lee was neither honest nor honourable in his conduct, was deceptive and was attempting to ‘privatise’ the cultural centre to avoid paying Mr Kim. Writing in Korean, he described the fundraising agreement as ‘yi-myin-gye-yak’. Translated directly, it means ‘hidden contract’. In the context of the editorial, Justice van Bohemen ruled the term had negative connotations of ‘back-door deal’, under the table agreement’ and ‘secret deal’. Use of the term in The New Zealand Sunday Times, coupled with the headline, had connotations of shamefulness and untoward secretiveness cast in pejorative and sensational terms, His Honour said. There was nothing shameful or inappropriate in three committee members entering into a private agreement to cover the fundraising shortfall, he said. The arrangement was kept private so as not to discourage further fundraising. Mr Steve Lee’s claimed defences of truth and honest opinion were dismissed. A further defence of ‘public interest communication’ was also dismissed. This covers publication of material of significant public concern, but requires responsibility in the reporting. Funding for the Korean cultural centre purchase was a matter of public interest, Justice van Bohemen ruled. Failure to first interview Mr Henry Lee, seeking comment on the allegations challenging his integrity counted against Mr Steve Lee’s claim to a public interest defence.
The High Court was told Mr Henry Lee also sued Mr Kim for defamation after Mr Kim sued to recover payment promised under the fundraising agreement. This defamation claim was subsequently withdrawn.
Hyung Soo Lee v. Yong Woo Lee – High Court (30.11.18)
19.016