Former President Lee Myung-bak and spouse lose second trial in lawsuit against KAMCO seeking nullification of public auction disposition

Former President Lee Myung-bak. [Image source=Yonhap News]

[Asia Economy Reporter Choi Seok-jin, Legal Affairs Specialist] Former President Lee Myung-bak and his wife lost the administrative lawsuit claiming the public auction disposition of their residence in Nonhyeon-dong, Gangnam-gu, Seoul was invalid, both in the first trial and on appeal.

The Seoul High Court Administrative Division 10 (Chief Prosecutor Seong Su-je, Yang Jin-su, Ha Tae-han) on the 29th dismissed the appeal filed by the former president and his wife against Korea Asset Management Corporation (KAMCO) in the appeal trial for confirmation of invalidity of the public auction disposition, ruling against the plaintiffs.

In April 2018, the prosecution indicted former President Lee on charges including bribery under the Act on the Aggravated Punishment of Specific Crimes and requested seizure and preservation of part of his assets, leading the court to freeze the Nonhyeon-dong residence and other properties.

Subsequently, in October 2020, the Supreme Court confirmed a sentence of 17 years imprisonment, a fine of 13 billion KRW, and a confiscation amount of 5.78 billion KRW for the former president. The prosecution then entrusted KAMCO with conducting the public auction to collect the fine and confiscation. The Nonhyeon-dong building and land were auctioned off in July for 11.156 billion KRW.

The former president and his wife filed a lawsuit to confirm the invalidity of KAMCO's public auction disposition and to cancel the sale decision, arguing that since the couple each owned half of the shares of the Nonhyeon-dong building, it was wrong to auction them off collectively.