The head of a redevelopment association near Sinyongsan Station and others have been indicted on charges of causing approximately 3.8 billion won in damages to the association by unfairly allocating occupancy rights to relatives and acquaintances.
On December 11, the Criminal Division 2 of the Seoul Western District Prosecutors' Office (Chief Prosecutor Kim Joohyun) announced that the association head, Mr. A (64), and association representative Mr. B (64) have been indicted and detained on charges of breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes. Eleven other association executives and officials involved in the crime will stand trial without detention.
Mr. A and others are accused of purchasing unauthorized buildings within the redevelopment area that had already been destroyed by fire between April and July 2023, then falsifying facts to make it appear as if the buildings still existed, and assigning occupancy rights to relatives and close associates through so-called "collusive lawsuits" (fraudulent lawsuits).
It was also confirmed that in 2021, they received money and valuables, including an agreement to receive 30% of the service fee as a kickback from a service provider in exchange for a contract.
This case was uncovered after prosecutors, while investigating an initial occupancy rights sales fraud case, discovered evidence that association officials were systematically involved and subsequently expanded their investigation.
The prosecution explained that, after searching the association office and residences and analyzing extensive recordings, association documents, and account transaction records, they uncovered the corrupt structure within the redevelopment project.
A prosecution official emphasized, "We will continue to respond strictly to real estate crime offenders who cleverly evade the law to gain unjust profits and deprive ordinary citizens of opportunities to secure housing."
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