Seoul High Court Begins Appeals for Five Defendants in Daejang-dong Corruption Case
Seoul High Court opened the appellate phase of the Daejang-dong development corruption case on the 13th, marking the first formal hearing for the five defendants’ appeals after their 1st-trial convictions.
The defendants are Yoo Dong-gyu, the former planning chief of Seongnam Urban Development Corporation; Kim Man-bae, the major shareholder of Hwacheon Daeyu Asset Management; Nam Wook, a lawyer; Jung Young-hak, an accountant; and Jung Min-yong, a lawyer. They are charged with colluding with Seongnam City in 2014–2015 to secure preferential treatment for the Daejang-dong project, allegedly causing at least 489.5 billion won in losses to Seongnam Urban Development Corporation, with related charges including breach of fiduciary duty and embezzlement offenses.
At the outset of the hearing, each defendant presented reasons for appealing. Yoo said he acted under higher-ups’ orders and argued that some charges may be time-barred and that the trial court made a legal error in its factual findings. Kim asked for acquittal, insisting that the project funds used to advance the Daejang-dong plan were intended for policy goals and thus did not constitute breach of duty; he also argued that a 100 billion won loan to Cheonhwa Dongin No. 1 was a necessary business measure.
Only one prosecutor from the Office of the State Prosecutor attended the session, and the prosecutor asked the court to dismiss the appeals, offering no additional remarks on the evidence. The prosecution’s participation followed controversy last November, when it itself abandoned its appeal against the 1st trial verdict.
In the district court’s 1st trial, all five defendants received substantial penalties. Yoo and Kim were each sentenced to eight years in prison; Yoo was also ordered to pay a 4 billion won fine and forfeit 810 million won, while Kim was ordered to forfeit 42.8 billion won. Jung Young-hak received six years with a 3.8 billion won fine and 3.7 billion won in forfeiture. Jung Min-yong and Nam Wook received five and four years in prison, respectively.
The case has drawn broad attention in Korea due to its scale and political connections, involving figures linked to a major private developer and the city government during Lee Jae-myung’s tenure as Seongnam mayor. For U.S. readers, the proceedings illustrate South Korea’s ongoing anti-corruption effort in high-stakes urban redevelopment and how the outcome could influence investor confidence, regulatory risk, and the climate for large private-public infrastructure projects in Korea. The appellate court’s decisions in the coming months will help determine the trajectory of accountability for one of Korea’s most high-profile development scandals.