Mayor Shin Sangjin: "Lifting Confiscation of 'Daejang-dong Breach of Trust Profits' Would Permanently Deprive Citizens of Property Rights"

Seongnam City Submits Strong Opposition to Release of Asset Preservation on 'Embezzlement Proceeds'
City Warns: "Prosecution and State Cannot Avoid Liability if Asset Preservation is Lifted"

Seongnam City (Mayor Shin Sangjin) announced on November 18 that it has submitted a strongly worded opinion to the Seoul Central District Prosecutors' Office opposing the application for the release of asset preservation filed with the court by Nam Wook and other key defendants in the Daejang-dong development preferential treatment scandal.

Seongnam City Hall exterior. Provided by Seongnam City

In its opinion, Seongnam City pointed out, "If even a portion of the 207 billion won currently under asset preservation by the prosecution is released, the effectiveness of the 405.4 billion won 'lawsuit to confirm the invalidity of dividend distribution (invalidity of dividend resolution)' currently being pursued by Seongnam City (Seongnam Urban Development Corporation) will be virtually lost, and the opportunity for citizens to recover their property rights could be permanently deprived." This civil lawsuit is ongoing at the Suwon District Court Seongnam Branch, with the next hearing scheduled for December 9.

The city emphasized, "The demand by Nam Wook and other Daejang-dong case defendants for the release of asset preservation cannot be tolerated either legally or socially," adding, "Assets under preservation must remain frozen as a core guarantee until a final civil ruling is made."

In particular, regarding some defendants' arguments for release on the grounds that confiscation has not been ordered, the city pointed out, "This is merely a technical decision based on the scope of the Conflict of Interest Prevention Act and the timing of the benefit's occurrence; it does not mean that the acquired profits are legitimate."

Seongnam City strongly asserted that there is a very high risk of asset concealment and transfer to third parties.

According to media reports, defendant Nam Wook was found to be attempting to sell real estate holdings while simultaneously demanding the release of asset preservation.

The city stated, "If asset preservation is lifted, there is a high possibility that the defendants will quickly dispose of their assets, which could result in the worst-case scenario where Seongnam City is unable to recover assets even if it wins the civil case."

Mayor Shin Sangjin of Seongnam City issued a stern warning, stating, "We will take all legal measures to maintain the asset freeze until a final civil ruling is made, and if a premature release makes it impossible for citizens to recover their property rights, the responsible parties, including the prosecution and the state, will not be free from liability for compensation."