Most Major Law Firms Refuse to Take the Case
City Expresses Strong Regret: "A Betrayal of Legal Professionals' Duty"
Civil Lawsuit Becomes Significantly More Difficult After Prosecution Drops Appeal
Mayor Shin Sangjin: "We Will Prove the Will of
On November 28, Seongnam City (Mayor Shin Sangjin) announced that it is facing significant difficulties in its ongoing civil lawsuits and provisional seizure procedures aimed at recovering criminal proceeds worth several hundred billion won, which were illicitly obtained by those involved in the Daejang-dong development corruption scandal, due to collective refusals from major domestic law firms to take on the case.
Seongnam Mayor Shin Sangjin is submitting a complaint to the Corruption Investigation Office for High-ranking Officials on the morning of the 19th. Provided by Seongnam City
Despite these challenges, Seongnam City declared its strong determination to pursue the lawsuits to the end in order to realize social justice, asserting that "criminal proceeds must be recovered without fail."
On November 7, after prosecutors decided not to appeal, the amount subject to confiscation through criminal trial was limited to 47.3 billion won, and even the assets of the Daejang-dong group that had already been preserved faced the risk of being released. In response, the city immediately began civil action.
However, from the stage of appointing legal representatives, the city encountered an unexpectedly formidable barrier. Excluding the law firms that had defended the Daejang-dong defendants in criminal trials-Bae, Kim & Lee (for Kim Manbae), Lee & Ko (for Nam Wook), HwaWoo (for Jung Younghak), and YK Law (for Yoo Donggyu)-Seongnam City approached several prominent large law firms in Korea to represent the lawsuit. However, all of these firms declined to take the case without providing clear reasons. Even the advisory law firm for Seongnam Urban Development Corporation refused to accept the case.
A Seongnam City official expressed strong regret, stating, "Recovering criminal proceeds is not simply a financial issue, but a core public value of realizing social justice. It is deeply disappointing that Korea's leading law firms have turned a blind eye to this, neglecting the social responsibilities of legal professionals."
The city recently obtained and began analyzing the list of frozen assets belonging to the Daejang-dong group from prosecutors. However, it faces practical challenges, as each individual asset-such as hidden real estate and bonds-requires separate verification of ownership and must meet the requirements for provisional seizure and litigation. Since this is an extensive task requiring meticulous examination and individual responses, the assistance of a major law firm equipped with specialized personnel and systems is deemed essential.
Even under these adverse circumstances, Seongnam City maintains a firm stance that it will not abandon its mission to recover criminal proceeds. The city is making every effort to find a capable law firm willing to participate in this public cause, aiming to finalize the appointment process as soon as possible and to swiftly carry out preservation measures to prevent the defendants from dissipating assets before their sentences are finalized.
Mayor Shin Sangjin emphasized, "We must establish the principle that 'criminal proceeds must be recovered,'" adding, "Even if major law firms turn their backs, Seongnam City's resolve on behalf of its citizens is even stronger, and we will prove it." The legal community and the public are closely watching to see what impact Seongnam City's civil lawsuit will have on the legal sector and the realization of social justice.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
