[Asia Economy (Seongnam) = Reporter Lee Young-gyu] Seongnam City in Gyeonggi Province is set to actively pursue the recovery of unjust profits from the Pangyo Daejang urban development project.
The dedicated strategic planning team (TF) for the Pangyo Daejang urban development project in Seongnam City announced on the 9th that it sent a recommendation letter to Seongnam Urban Development Corporation, a city-affiliated organization, instructing them to review the forfeiture of the project performance bond paid by the developer (Seongnam-ui Tteul) and the provisional seizure of assets of the four defendants?Yoo Dong-gyu, Kim Man-bae, Nam Wook, and Jung Young-hak?and to report detailed implementation plans within two weeks.
A TF official explained, "Considering that the four defendants, including Kim Man-bae, jointly committed breach of trust causing financial damage to Seongnam Urban Development Corporation, and that they led the affairs of the private developer, we have recommended actively reviewing measures such as set-off or forfeiture of the bond."
Seongnam Urban Development Corporation currently holds 7.239 billion KRW in project performance bonds paid by the developer Seongnam-ui Tteul in accordance with the project agreement.
The TF also requested the corporation to promptly proceed with provisional seizure of the corporate and personal assets of the four defendants before filing lawsuits jointly with Seongnam City for damages and recovery of unjust profits.
In particular, the TF ordered consideration of sending certified letters separately from the litigation process to the four defendants, inquiring about their willingness to voluntarily return the benefits.
Earlier in October, Seongnam City formed a dedicated TF led by Mayor Eun Soo-mi, including heads of five related departments such as the Budget and Finance Division and lawyers. The TF is currently reviewing specific measures to recover unjust profits, such as freezing the assets of the developer and prohibiting additional dividends.
Last month, the TF sent a recommendation to Seongnam Urban Development Corporation requesting a legal review and report on the possibility of terminating the project and shareholder agreements, suspending dividends to the developer through the board of directors, and recovering unjust profits.
Mayor Eun Soo-mi of Seongnam City promised, "Regarding the special favor allegations related to the Daejang-dong development project, we will take all legal and administrative measures to ensure that not a single citizen of Seongnam suffers any damage."
Meanwhile, Seongnam City holds supervisory authority over Seongnam Urban Development Corporation, its affiliated organization, pursuant to the Local Public Enterprises Act (Article 73) and the Ordinance on the Establishment and Operation of Seongnam Urban Development Corporation (Articles 35 and 36).
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