Prosecutors Seek Two-Year Prison Terms for Yoo Donggyu, Nam Wook, and Jung Younghak in Wirye Development Corruption Case

Prosecutors: "Long-Term Collusion Formed... Unfair Selection of Business Operators and Related Processes"

Former Head of Planning at Seongnam Urban Development Corporation, Yoo Donggyu, 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 October 31, 2025, and is stating his position. 2025.10.31 [Joint Coverage] Yonhap News Photo by Yonhap Reporter

Prosecutors have requested prison sentences for Yoo Donggyu, former Head of Planning at Seongnam Urban Development Corporation, attorney Nam Wook, and accountant Jung Younghak, all of whom were additionally indicted on charges related to alleged preferential treatment in the Wirye New Town development project.

During the sentencing hearing for Yoo’s violation of the Anti-Corruption Act, held on November 28, 2025, at the Seoul Central District Court’s Criminal Division 1 (Presiding Judge Lee Chungeun), prosecutors asked the court to sentence Yoo to two years in prison. For co-defendants Nam and Jung, prosecutors also sought two-year prison terms and the forfeiture of 1,410,620,000 won each.

For Jung, a major shareholder of Wirye Asset Management who participated in the project, prosecutors requested two years and six months in prison. For Joo, the CEO of the special purpose company (SPC) Blue Wirye Project, prosecutors sought a one-year prison sentence.

Prosecutors stated, "The defendants formed long-term collusive relationships through the exchange of money and unfairly influenced the selection of business operators and other related processes."

According to the prosecution, in July 2013, Yoo used confidential information from Seongnam City and Seongnam Urban Development Corporation-such as the project schedule, feasibility assessment report, and public offering guidelines for the A2-8 block of the Wirye New Town development project-to ensure that Wirye Asset Management, a consortium formed by Nam and Jung, was selected as the private developer, and that Hoban Construction was chosen as the builder.

Afterward, from August 2014 to March 2017, as the development project progressed and a total implementation profit of approximately 41.8 billion won was generated, prosecutors allege that, according to the shareholder agreement, the private developers received dividend gains of about 4.23 billion won, while Hoban Construction received dividend gains of about 16.9 billion won.

The Wirye New Town apartment construction project involved supplying 1,137 housing units on a 64,713-square-meter site (A2-8 block) in Changkok-dong, Sujeong-gu, Seongnam City. The project was carried out by Blue Wirye Project, a special purpose company established in November 2013 and led by Seongnam Urban Development Corporation, and was completed in 2016.