Supreme Court Confirms 5-Year Prison Sentence for Kim Inseop, 'Baekhyeon-dong Lobbyist'

Lee Jae-myung's Trial Likely to Be Influenced by Baekhyeon-dong Corruption Allegations

Kim In-seop, former CEO of Korea Housing Technology, who was identified as the key lobbyist in the ‘Baekhyeon-dong development corruption’ allegations and indicted on charges of bribery mediation, has had his prison sentence confirmed. This ruling is the Supreme Court’s first judgment on the Baekhyeon-dong development corruption allegations related to Lee Jae-myung, leader of the Democratic Party of Korea, and with Kim’s sentence upheld, it is expected to impact Lee’s trial as well.

On the 28th, the Supreme Court’s 2nd Division (Presiding Justice Kwon Young-joon) confirmed the original court ruling that sentenced Kim to five years in prison for violating the Act on the Aggravated Punishment of Specific Crimes (bribery mediation) and ordered the confiscation of approximately 6.357 billion KRW.

Kim In-seop, former CEO of Korea Housing Technology, who was identified as the 'lobbyist for official approval' in the Baekhyun-dong development favoritism suspicion, is attending the first trial sentencing hearing held at the Seoul Central District Court in Seocho-gu, Seoul on the 13th. Photo by Kang Jin-hyung aymsdream@

The court stated, “The lower court’s guilty verdict did not exceed the limits of free evaluation of evidence.” In particular, regarding the bribery mediation charges, it ruled that “there was no error in the legal principles concerning mediation acts, consideration, intent, indictment amendment, recognition of illegality and legal mistake, and the creative effect of the reconciliation recommendation decision.”

Kim was indicted on charges of receiving 7.7 billion KRW and business rights to a lunchbox restaurant worth 500 million KRW from Jung Ba-ul, CEO of Asia Developer, under the pretext of requesting permits related to the Baekhyeon-dong development project handled by Seongnam City officials from September 2015 to March 2023. The prosecution viewed Kim, who served as the head of Lee Jae-myung’s campaign headquarters in 2006, as playing the role of a ‘lobbyist’ in the permit process and receiving 7.7 billion KRW and the lunchbox restaurant business rights as compensation.

The first trial sentenced him to five years in prison and ordered the confiscation of approximately 6.357 billion KRW. The first trial court recognized that Kim received 7.45 billion KRW in cash and the lunchbox restaurant business rights as mediation fees. However, it acquitted him of receiving 250 million KRW from CEO Jung out of the 7.7 billion KRW.

The second trial also sentenced him to five years in prison and ordered the confiscation of approximately 6.357 billion KRW. The court maintained the acquittal on the primary indictment regarding the 250 million KRW loan but found him guilty of the alternative indictment for failing to repay the principal and interest, thereby gaining financial benefits. The second trial court stated, “The defendant took charge of liaison duties related to the Baekhyeon-dong project upon request from CEO Jung, based on his friendship with Lee and former Chief Secretary Jung,” and added, “This crime undermines the fairness of public officials’ duties and public trust, making the offense particularly serious.”