The city of Seongnam has filed a property seizure application with the court to recover the criminal profits of those involved in the Daejang-dong development corruption, amounting to 567.3 billion won, it announced on the 2nd.
According to Seongnam City, on December 1, Seongnam Urban Development Corporation filed a total of 13 seizure applications against the real estate, deposits, and other assets of Daejang-dong developers, including Kim Man-bae, a major shareholder of Hwacheon Daeyu Asset Management, Nam Wook, and Jung Young-hak. Seongnam City stated, “This action is a preemptive measure to prevent their assets from being arbitrarily disposed of or concealed during the trial process, aiming to substantially recover citizen losses upon final victory.”
The targeted amount totals 567.3 billion won, with 400 billion won from Kim Man-bae, 82 billion won from Nam Wook, 64.69 billion won from Jung Young-hak, and 675 million won from Yoo Dong-gyu. A Seongnam City official commented, “We have encompassed various forms of criminal profits, such as deposit bonds, real estate, trust income rights, and compensation claims,” adding that the intention is to freeze all assets formed through the Daejang-dong corruption.
In particular, this seizure aims to recover the extensive criminal profits of the Daejang-dong group, which the prosecution has given up on, including land lot sale dividends of 405.4 billion won, apartment sale profits of 369 billion won, and asset management fees of 14 billion won, according to Seongnam City.
Seongnam City is also separately pursuing a ‘claim for the return of crime victim property’ under the ‘Special Act on the Confiscation and Recovery of Corrupt Property.’ On November 28, Seongnam City submitted a return claim to the prosecution for the entire 112.8 billion won, recognized by the first trial court of Daejang-dong as a loss to Seongnam Urban Development Corporation.
A Seongnam City official stated, “By pursuing both damage compensation claims through civil lawsuits and crime profit return claims through criminal procedures, we are diversifying the avenues for recovering citizen losses.” They emphasized that the seizure and return claim demonstrate a strong determination to fully recover the monetary damages suffered by Seongnam City and its citizens due to the Daejang-dong corruption, and to never tolerate unjust gains acquired through crime.