Supreme Court Finally Dismisses Trust Company's Objection Against Seizure of Jeon Du-hwan's Land in Osan

The objection filed by the trust company managing the land of former President Jeon Du-hwan's family in response to the confiscation has been finally dismissed by the Supreme Court.

The funeral hall of the late former President Jeon Du-hwan./Photo by Kang Jin-hyung aymsdream@

According to the legal community on the 20th, the Supreme Court's 3rd Division (Presiding Justice Lee Heung-gu) confirmed on the 15th the lower court's decision to dismiss the objection to the execution of the judgment filed by Kyobo Asset Trust.

In 2008, Kyobo Asset Trust took charge of five forest land parcels in Osan City, Gyeonggi Province, through a real estate secured trust contract with the former president's family. The prosecution regarded this land as the former president's nominee property and seized the real estate in 2013. In response, Kyobo Asset Trust filed an objection to the execution with the Seoul High Court in 2016.

However, the following year, the prosecution auctioned off the five seized forest land parcels, and 7.56 billion won was allocated as part of the confiscation funds. The Seoul High Court ruled in June that the objection had no practical effect, as the confiscation execution was already completed at the time the prosecution seized and sold the land through auction.

Kyobo Asset Trust appealed this decision, but the Supreme Court also upheld the Seoul High Court's judgment and dismissed the appeal.

Separately from the objection, Kyobo Asset Trust filed a lawsuit against the prosecution in 2017 to confirm the invalidity of the seizure order, and in 2019, filed another lawsuit to cancel the distribution of auction proceeds for three forest land parcels in Osan.

The lawsuit to confirm the invalidity of the seizure order was concluded last July with the Supreme Court's final ruling affirming the validity of the prosecution's seizure of the forest land. According to this ruling, the land value of two forest parcels, approximately 2.05 billion won, was forfeited to the national treasury. The proceeds distribution cancellation lawsuit concerning the three parcels involved in the auction has not yet been recovered. Kyobo Asset Trust lost again in the second trial on the 8th, following the first trial.

If the loss ruling is finalized, the prosecution is expected to recover an additional 5.5 billion won from the former president. The remaining unpaid confiscation amount will then be 86.7 billion won. Kyobo Asset Trust is reportedly yet to submit a notice of appeal.