Prosecutors Demand 40 Years for Main Suspect in Guro Housing Association Case Involving 24 Billion Won Fraud

by Hwang Seoyul

Published 19 Jan.2023 10:13(KST)

[Asia Economy Reporter Hwang Seoyul] A heavy sentence was requested for a group that deceived about the possibility of constructing a local housing cooperative apartment in Guro-gu, Seoul, and embezzled about 24 billion won from over 400 people.

[Image source=Yonhap News]

On the 19th, the prosecution requested a 40-year prison sentence and a fine of 6.6771 billion won for Ryu (60), the former CEO of the Guro Local Housing Cooperative's former business agency, at the sentencing hearing held the previous day at the Seoul Southern District Court Criminal Division 13 (Presiding Judge Lee Sang-ju). For Lee (80), who served as the former promotion committee chairman, the prosecution requested a 20-year prison sentence and a fine of 2.39608 billion won.

The prosecution explained the reason for the request, saying, "Considering that 477 victims and their families are suffering, there are effectively thousands of victims. The victims have lost their lifelong savings or incurred debts through loans, and are experiencing great mental distress and family discord."

They were indicted on charges of breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes. From November 2016 to September 2019, they are accused of embezzling a total of 23.9 billion won in contract deposits from 477 victims. Including victims who did not participate in the lawsuit, the total damage amounts to 45 billion won.

They promoted the project as if they had secured 60-80% of land use rights, making it possible to move into the apartment by 2021. However, it was revealed that the actual secured land was only 20-30%. To obtain approval for establishing a local housing cooperative, land use rights for more than 80% of the housing construction site area must be secured.