Court: "Enormous Land Development Profits Distributed to Private Contractors"
Former Planning Director Yoo Donggyu of Seongnam Urban Development Corporation, who was indicted on allegations of corruption in the Daejang-dong development project, is attending the first trial sentencing hearing held at the Seoul Central District Court in Seocho-gu, Seoul on the 31st and is stating his position. Photo by Yonhap News
The court has handed down heavy sentences and ordered immediate detention for the private contractors involved in the Daejang-dong development corruption scandal in the first trial, nearly four years after they were indicted.
On the 31st, the 22nd Criminal Division of the Seoul Central District Court (Presiding Judge Cho Hyungwoo) held the sentencing hearing for the private contractors indicted on charges including breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes, as well as Yoo Dong-gyu, former Head of Planning at Seongnam Urban Development Corporation.
The court sentenced Kim Man-bae, the majority shareholder of Hwacheon Daeyu Asset Management, and former executive Yoo to eight years in prison each. Attorney Nam Wook received four years, accountant Jung Young-hak was sentenced to five years, and attorney Jung Min-yong received six years in prison.
The court stated, "By finalizing the consortium agreement that set the confirmed profit at less than half of the expected profit, the defendants prevented the corporation from obtaining its rightful profit and created a financial risk by allowing the pre-selected contractors to monopolize the remaining profit. This risk materialized, and the enormous profits from the land development, which should have benefited local residents or the public, were instead distributed to the private contractors."
The private contractors and former executive Yoo were indicted between October and December 2021 on charges of drafting the consortium guidelines to favor Hwacheon Daeyu in the Daejang-dong development project, ensuring that the Seongnam's Garden consortium including Hwacheon Daeyu was selected as the preferred bidder, thereby obtaining 788.6 billion won in illicit gains and causing 489.5 billion won in damages to Seongnam Urban Development Corporation.
Previously, prosecutors had requested 12 years in prison and a forfeiture of 611.2 billion won for Kim, seven years in prison, a fine of 1.7 billion won, and a forfeiture of 850 million won for former executive Yoo.
They also requested seven years in prison and a forfeiture of 101.1 billion won for attorney Nam, 10 years in prison and a forfeiture of 64.7 billion won for accountant Jung, and five years in prison, a fine of 7.4 billion won, and a forfeiture of 3.7 billion won for attorney Jung.
President Lee Jaemyung was separately indicted in connection with this case, but his trial was effectively suspended after his election due to Article 84 of the Constitution, which grants presidential immunity from prosecution. Previously, in March, the court summoned President Lee as a witness, but he failed to appear on five occasions.
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