Asia

SOGO Corruption Case Takes a Stunning Turn: Four Acquitted, Two Face Long Prison Terms

TAIPEI — Taiwan’s long-running Pacific SOGO bribery scandal has taken another dramatic turn after the High Court overturned the convictions of four defendants while upholding lengthy prison sentences against two former lawmakers.

The ruling, handed down on Aug. 21, cleared former New Power Party legislator Hsu Yung-ming, incumbent Chinese Nationalist Party (KMT) legislator Chen Chao-ming, Hsu’s assistant Wu Shih-chang, and Chen’s office director Liang Wen-yi.

At the same time, the court upheld a 10-year prison sentence for former independent legislator Su Chen-ching and an eight-year-and-six-month sentence for former KMT legislator Sufin Siluko, also known as Liao Kuo-tung.

The decision can still be appealed.

Four defendants cleared in latest ruling

The High Court overturned the earlier convictions of Hsu and Chen, as well as those of their respective associates.

Hsu had previously received a seven-year-and-four-month sentence, while Chen had been sentenced to seven years and eight months in prison and ordered to forfeit NT$1 million.

Their acquittals represent a major reversal from the Taipei District Court’s 2022 ruling, which convicted several lawmakers and associates in connection with the scandal.

Wu Shih-chang, Hsu’s assistant, had previously received a six-and-a-half-year sentence, while Liang Wen-yi, Chen’s office director, had been sentenced to five years. The High Court overturned those convictions as well.

Two former lawmakers still face lengthy prison terms

While four defendants were acquitted, the High Court rejected appeals from Su Chen-ching and Sufin Siluko.

Su’s 10-year sentence was upheld, while Sufin’s eight-and-a-half-year sentence also remained in place.

According to court findings reported by Taipei Times, Su was found to have received approximately NT$25.8 million in bribes over more than five years.

Sufin was found to have received about NT$6.2 million, with prosecutors alleging that both men used their legislative influence to assist former Pacific Distribution Investment chairman Lee Heng-lung in his efforts involving the ownership dispute surrounding Pacific SOGO.

At the heart of the case: a battle over Pacific SOGO

The corruption case grew out of a years-long dispute over control of the Pacific SOGO department-store chain.

According to Focus Taiwan/CNA, Lee Heng-lung had been involved in a prolonged legal battle with Far Eastern Group chairman Douglas Hsu over SOGO ownership dating back to the early 2000s.

Prosecutors alleged that Lee sought assistance from lawmakers to pressure the Ministry of Economic Affairs (MOEA) and influence legislation concerning the company’s ownership dispute.

The alleged efforts included legislative questioning, public hearings and proposed amendments to the Company Act that prosecutors said could have benefited Lee’s position.

The scandal therefore went beyond an ordinary bribery allegation: investigators said the payments were connected to attempts to use legislative influence to affect a major corporate ownership battle.

Millions allegedly changed hands

The case first gained widespread attention in 2020, when prosecutors investigated lawmakers accused of accepting money from Lee.

Earlier court proceedings found that Lee had allegedly paid legislators in exchange for political and legislative assistance.

Taipei District Court records cited by Taipei Times said the total amount of alleged bribes paid to lawmakers reached about NT$36.54 million.

The 2022 ruling resulted in prison sentences for several lawmakers, with penalties ranging from six months to 10 years.

The investigation also involved extensive searches. Earlier Taipei Times reporting said authorities conducted raids at dozens of locations and seized cash and documents during the investigation.

Lee Heng-lung also faced punishment

Lee, the former chairman of Pacific Distribution Investment, was himself prosecuted in connection with the case.

According to Taipei Times, he received a one-year-and-two-month prison sentence suspended for five years and was ordered to pay NT$10 million to the public treasury.

His cooperation with investigators was also significant in helping prosecutors establish the alleged bribery arrangements, according to earlier court reporting.

Another defendant’s case involved tax evasion

The latest ruling also mentioned former independent legislator Chao Cheng-yu.

Chao received a six-month sentence and a NT$60,000 fine for tax evasion.

Unlike the other defendants, that portion of his case had already become final because neither side appealed it.

Why the ruling matters

The High Court’s decision creates a sharply divided outcome in one of Taiwan’s most closely watched political corruption cases.

Two former lawmakers continue to face substantial prison sentences, while a sitting legislator, a former legislator and two associates have now been cleared at the appellate level.

The case also highlights the legal and political risks surrounding the use of legislative powers in private-sector disputes—particularly when lawmakers are accused of accepting money while intervening with government agencies or attempting to influence legislation.

The High Court’s ruling is not necessarily the final word, as the decision remains subject to appeal.

The Bigger Picture

The Pacific SOGO case has dragged on for years, beginning with a corporate ownership dispute and eventually expanding into a major political corruption investigation.

What began as a fight over control of one of Taiwan’s best-known department-store chains eventually pulled lawmakers, political aides, business executives and government officials into a complex legal battle.

Now, after years of investigations and court proceedings, the latest ruling has delivered both acquittals and convictions—but the final chapter may still be ahead.

For now, the SOGO scandal remains one of Taiwan’s clearest examples of how a corporate ownership battle can evolve into a much broader political corruption case.

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