Seongnam City: "Prosecution's Abandonment of Appeal Is a Judicial Corruption Scandal"
City to Pursue Provisional Seizure of 207 Billion Won in Criminal Proceeds from Daejang-dong Group
Full Recovery of 489.5 Billion Won in Citizen Damages... Comprehensive Legal Action Planned
Seongnam City in Gyeonggi Province has strongly objected to the prosecution's decision to forgo appealing the first trial verdict in the Daejang-dong development corruption case, characterizing it as an "abdication of the state's prosecutorial authority" and "dereliction of duty." The city has announced comprehensive legal action, including filing complaints with the Corruption Investigation Office for High-ranking Officials (CIO) against those involved and pursuing provisional seizure of criminal proceeds.
Seongnam City condemned the prosecution's decision, stating that it effectively grants impunity to the Daejang-dong group by abandoning the recovery of 788.6 billion won in criminal proceeds and 489.5 billion won in direct damages to Seongnam City, as specified in the indictment.
Seongnam City defined the prosecution's decision as an "abdication of the state's prosecutorial authority" and "dereliction of duty," criticizing the act of effectively granting impunity to the Daejang-dong group and pledging to recover citizens' losses to the very end.
In a statement released on the 12th, Seongnam City emphasized that the prosecution's decision to forgo an appeal constitutes "dereliction of duty," as it abandons the recovery of 788.6 billion won in criminal proceeds and 489.5 billion won in direct damages to Seongnam City, as stated in the indictment. The city further argued that allegations of "external pressure" and "abuse of authority" involving the Ministry of Justice during the appeal process are serious matters that undermine judicial justice.
Accordingly, Seongnam City and the Seongnam Urban Development Corporation have decided to file complaints with the CIO against the Minister of Justice, Deputy Prosecutor General, Chief Prosecutor of the Seoul Central District Prosecutors' Office, and others directly or indirectly involved in the prosecution's decision to forgo an appeal and the alleged "external pressure" and "abuse of authority" during the process, in order to clarify legal responsibility.
With the prosecution dropping the appeal, Seongnam City plans to take immediate preemptive action regarding the criminal proceeds of the Daejang-dong group, which are at risk of having their frozen assets released.
Seongnam City intends to apply for provisional seizure of the entire 207 billion won in criminal proceeds that the prosecution had previously confiscated and preserved, aiming to ensure that not a single won of illicit gains is taken by corrupt individuals.
Due to the prosecution's decision to forgo an appeal, there is now a high possibility that more than 160 billion won, out of the 207 billion won previously confiscated and preserved (excluding the 47.3 billion won seized in the first trial), will be unfrozen.
Seongnam City has announced that it will make every effort to recover losses suffered by citizens through ongoing civil lawsuits.
The city plans to expand the compensation amount to include the 489.5 billion won in damages from breach of trust prosecuted by the prosecution, plus additional amounts, and will focus on substantiating the damages to ensure full restitution to the citizens.
'Lawsuit to Nullify Dividend Resolution': The city is pursuing a lawsuit to nullify the 405.4 billion won in unjust dividends received by the Daejang-dong group, with the aim of reallocating these funds for the benefit of Seongnam citizens.
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Additionally, through the 'Lawsuit to Nullify Dividend Resolution,' the city intends to render the unjust dividends void from the outset.
Through this lawsuit, the city seeks to nullify the 405.4 billion won in unjust dividends received by Kim Manbae and other members of the Daejang-dong group, so that these funds can be redistributed for the benefit of Seongnam citizens.
Despite the court's observation that "it is extremely difficult for the Seongnam Urban Development Corporation to recover damages through civil procedures," the city argued that the prosecution, by forgoing an appeal, is shifting the entire burden of proof onto Seongnam City.
Shin Sangjin, Mayor of Seongnam, reiterated his firm stance, stating, "The prosecution's abandonment of the appeal is a national disgrace and a judicial corruption scandal. I will mobilize every available resource to the utmost to defend the rights of our citizens and uphold social justice to the very end."
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