Severe Sentences Proposed for Key Figures in Daejang-dong Development Scandal

In a significant development regarding the Daejang-dong development corruption case, prosecutors have recommended a 12-year prison sentence and a fine of approximately 611.1 billion KRW for Kim Man-bae, the major shareholder of Hwacheon Daeyu Asset Management. Former head of planning at Seongnam Urban Development Corporation, Yoo Dong-kyu, faces a proposed sentence of 7 years and a fine of 1.7 billion KRW.

During the sentencing hearing held on June 27 at the Seoul Central District Court, the prosecution emphasized that Kim was a central figure who directly engaged in lobbying and reaped the most benefits from the scheme. They argued that he has shown no remorse and has attempted to evade responsibility, leaving no grounds for leniency in sentencing. In contrast, they noted that while Yoo's actions as a public official were serious, his cooperation in revealing the truth about the corruption warranted some consideration.

Additionally, the prosecution is seeking a 10-year sentence and a fine of 64.6 billion KRW for accountant Jeong Young-hak, a 7-year sentence and a fine of 101 billion KRW for lawyer Nam Wook, and a 5-year sentence along with a fine of 7.44 billion KRW and a forfeiture of 3.72 billion KRW for lawyer Jeong Min-yong.

In their closing arguments, prosecutors stated that the Daejang-dong project was expected to yield enormous profits from the outset. They claimed that the private developers, unable to acquire project rights through legitimate means, resorted to corrupt practices, including bribing public officials in Seongnam City and the corporation. They stressed the need for strict legal consequences to restore public trust in the fairness and transparency of development projects.

The private developers are accused of causing at least 65.1 billion KRW in damages to the corporation by undervaluing the land price per pyeong from over 1.5 million KRW to 1.4 million KRW. Prosecutors believe they gained a total of 788.6 billion KRW in illicit profits through insider information.