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PPP Urges Resumption of President Lee's Trial After Daejang-dong Private Operators Taken Into Custody

Strong Opposition to Move to Abolish Breach of Trust Charge
"Concerns That Abolishing the Charge Could Halt President's Trial"

With all key figures involved in the Daejang-dong development corruption scandal, including Kim Manbae, the major shareholder of Hwacheon Daeyu Asset Management, being taken into custody following their first trial verdict, the People Power Party has called for the prompt resumption of the suspended trial of President Lee Jaemyung.

PPP Urges Resumption of President Lee's Trial After Daejang-dong Private Operators Taken Into Custody Yoo Dong-gyu, former Planning Director of Seongnam Urban Development Corporation, who was convicted on charges related to the Daejang-dong development corruption scandal. Photo by Yonhap News Agency

Park Sunghoon, Chief Spokesperson for the People Power Party, stated in a commentary on November 1, "The court made it clear that the breach of trust crimes committed by the main actors in the Daejang-dong corruption case were carried out under the 'decision of the Seongnam City leadership' and that these were 'collusive corruption crimes.' The court has clearly recognized that this is not a simple private-sector corruption case, but a case of structural, power-driven corruption created under the administration of then-Seongnam Mayor Lee Jaemyung," he said. "Yoo Donggyu, Kim Manbae, Nam Wook, Jeong Minyong, and Jeong Younghak have all been detained. However, only President Lee, the 'final decision-maker,' has yet to stand trial," he added.


Chief Spokesperson Park also criticized the current ruling party's move to abolish the crime of breach of trust, calling it "shameless." He said, "Trials are ongoing for the Daejang-dong, Baekhyeon-dong, and corporate credit card misuse cases, all on charges of breach of trust. If the crime of breach of trust is abolished, all trials involving the president will be halted. Instead of standing trial, there is an unconstitutional attempt to rewrite the law." He emphasized, "It is telling that the presiding judge, who sentenced the private business operators involved in the Daejang-dong corruption scandal to long prison terms and ordered their detention, warned of 'expected side effects' if the breach of trust charge is abolished."

PPP Urges Resumption of President Lee's Trial After Daejang-dong Private Operators Taken Into Custody Lawyer Nam Wook, who was convicted on charges of corruption related to the Daejang-dong development scandal. Photo by Yonhap News

Park continued, "The judiciary has exposed the structure of corruption, yet the administration is attempting to eliminate the law to cover up that structure. I call on President Lee: Stop hiding behind political shields and face judicial judgment with integrity. If you are innocent, do not run away-prove it in court."


Lee Chung-hyung, spokesperson for the People Power Party, also commented, "This verdict is the first indication that the Daejang-dong case is not merely a private-sector corruption case, but a power-driven corruption scandal." He demanded, "President Lee should publicly state his position on the outcome of this trial before the people."


Spokesperson Lee added, "The structural root of the Daejang-dong corruption lies with the then-mayor of Seongnam City, who held the authority to make policy decisions-namely, President Lee. Now that the private-sector figures have been detained, President Lee cannot be the only one to evade judicial judgment."


People Power Party lawmaker Na Kyungwon commented on Facebook regarding the verdict, "What is important is that former Director Yoo Donggyu received approval from the leadership for the arrangements he coordinated among private operators, leaving open the possibility of involvement by higher-ups. This points to President Lee and Chief of Staff Jeong Jin-sang as the de facto masterminds."


Na further stated, "The court also warned of the risks associated with abolishing the crime of breach of trust. In short, President Lee is guilty. The reasons for the prompt resumption of President Lee's trial have become even clearer. Only then can the rule of law, fairness, and justice prevail."


The 22nd Criminal Division of the Seoul Central District Court (Presiding Judge Cho Hyungwoo) on October 31 convicted all private-sector operators involved in the Daejang-dong case, as well as Yoo Donggyu, former Planning Director of Seongnam Urban Development Corporation, on charges including breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes, sentencing them to immediate detention. The main sentences were as follows: Kim Manbae, major shareholder of Hwacheon Daeyu, 8 years in prison and forfeiture of 42.8 billion won; lawyer Nam Wook, 4 years in prison; accountant Jeong Younghak, 5 years in prison; lawyer Jeong Minyong, 6 years in prison and a fine of 3.8 billion won; and former director Yoo Donggyu, 8 years in prison and a fine of 400 million won.


The court stated, "This case is a series of corruption crimes committed in collusion, based on relationships formed over a long period through the provision of money and valuables. These actions severely undermined the fairness and integrity of the project operator selection process and are subject to significant public criticism." The court further explained, "The project guidelines were drafted to favor private operators, and various conveniences were provided during the selection process, resulting in business profits being concentrated in the private sector. As a result, Seongnam Urban Development Corporation suffered financial losses." However, the court did not recognize the charge of breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes, applying only the charge of occupational breach of trust under the Criminal Act to determine the sentences.


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