Supreme Court Confirms 5-Year Prison Sentence for Construction Entrepreneur Triggering 'Cheongwadae Directed Investigation' Controversy

[Asia Economy Reporter Kim Hyung-min] A construction businessman from Ulsan, who sparked controversy over the 'Cheongwadae Ulsan Mayor's Directed Investigation,' has been sentenced to five years in prison.

The Supreme Court's 3rd Division (Presiding Justice Kim Jae-hyung) on the 30th upheld the original sentence of five years in prison for construction businessman A, who was indicted on charges including fraud and attempted coercion. Police officer B, who was indicted together, was sentenced to one year and six months in prison.

They were prosecuted on charges of threatening the brother of the Ulsan Mayor's Secretary at the time in March 2015, after another company took over the apartment construction project for which they had a service contract, with statements implying that "the Ulsan Mayor's younger brother and the Secretary could be investigated or lose their positions." At that time, the Ulsan Mayor was Kim Gi-hyeon, the floor leader of the People Power Party.

During the process of promoting the apartment project, A raised suspicions of misconduct among Ulsan city officials. In this process, he also reported allegations of corruption involving the floor leader Kim's younger brother, which became the starting point of the Cheongwadae election interference and directed investigation controversy.

A was also found mostly guilty of embezzling 5 billion KRW from nine people under the pretexts of investment in the apartment construction project and loans. B was also found guilty of leaking investigation materials to A.

The first trial sentenced A to four years in prison and B to ten months in prison with a two-year probation. However, the second trial recognized the charge of attempted coercion as well, sentencing A to five years in prison and B to one year and six months in prison.

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