Prosecutors: "Jeon Du-hwan's Yeonhui-dong Main House and Garden Are Nominee Properties"... Disposal Prohibition Injunction Completed

"Filing a Lawsuit to Claim Ownership Transfer Registration Due to Termination of Trust Agreement"

Former President Jeon Du-hwan's residence in Yeonhui-dong, Seodaemun-gu, Seoul. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Choi Seok-jin] The Supreme Court accepted the application for execution objection against the prosecution's seizure of the main building and garden of former President Jeon Du-hwan's residence. Meanwhile, the prosecution announced that it will proceed with a lawsuit to claim ownership transfer registration based on the cancellation of a nominal trust, judging that these real estate properties are Jeon’s assets held under a borrowed name.

The intention is to revert the registration, which is under the names of Jeon’s wife and secretary, back to the original owner, former President Jeon, and then execute the collection of the confiscated funds.

On the 12th, the Seoul Central District Prosecutors’ Office stated, "On the 9th, the Supreme Court made a decision accepting the application for execution objection by the registered owners of the main building and garden in Yeonhui-dong related to former President Jeon Du-hwan, on the grounds that these are not 'illegal assets'."

It added, "Separately, the prosecution, judging that the subject real estate is actually 'borrowed-name property' owned by former President Jeon Du-hwan, filed for a provisional injunction to prohibit disposal of the real estate against the registered owners on behalf of Jeon. The Seoul Western District Court granted the injunction, and the provisional registration was completed on the 8th."

The creditor’s right of subrogation allows a creditor to exercise rights against a third debtor on behalf of their own debtor.

The Seoul Central District Prosecutors’ Office stated, "With the execution objection case concluded at the Supreme Court, the prosecution plans to file a main lawsuit (claiming ownership transfer registration based on cancellation of nominal trust) under the provisional injunction, transfer ownership to former President Jeon’s name, and proceed with the execution of the confiscated funds."

According to the legal community, the Supreme Court’s 2nd Division (Presiding Justice No Jeong-hee) confirmed the lower court’s ruling on the 9th that the confiscation of the main building and garden was unlawful in the final appeal filed by former President Jeon against the prosecution’s confiscation.

The Seoul Central District Prosecutors’ Office auctioned off Jeon’s Yeonhui-dong residence in 2018 after he failed to pay the confiscated funds. Former President Jeon has opposed the execution of the 220.5 billion KRW confiscated funds, confirmed for charges including rebellion and bribery, by confiscating the Yeonhui-dong residence, claiming it is unlawful.

Jeon’s Yeonhui-dong residence is divided into three parts: the main building under the name of his wife Lee Soon-ja, the garden under the secretary’s name, and an annex under the daughter-in-law’s name.

In November last year, the Seoul High Court ruled to cancel the seizure of the main building and garden, excluding the annex, citing insufficient legal grounds to consider them confiscatable property.

However, the court at that time added a proviso, stating, "If the main building and garden correspond to the defendant’s (Jeon Du-hwan’s) borrowed-name property, the state can file a creditor’s subrogation lawsuit to restore the registration in the defendant’s name and then execute the confiscation order."

This content was produced with the assistance of AI translation services.