Change in Indictment for Daejang-dong Embezzlement '65.1 Billion+α → 489.5 Billion', Decision Next Month

The amount of embezzlement charges against private developers involved in the Daejang-dong development, initially stated as '65.1 billion KRW + α,' may be changed to 489.5 billion KRW, with the decision to be made by the court next month.

Yoo Dong-gyu, former head of Seongnam Urban Development Corporation, Nam Wook, lawyer [Image source=Yonhap News]

The Seoul Central District Court Criminal Division 22 (Presiding Judge Lee Jun-cheol) announced on the 17th that it will make a final decision on whether to approve the indictment amendment on the 5th of next month during the trial of Kim Man-bae, the major shareholder of Hwacheon Daeyu Asset Management, former Seongnam Urban Development Corporation director Yoo Dong-gyu, lawyer Nam Wook, and accountant Jung Young-hak, who are charged with embezzlement under the Act on the Aggravated Punishment of Specific Economic Crimes. The court stated, "Once a few parts are finalized, we will decide immediately."

Since the court requested revisions unrelated to the core embezzlement amount in the indictment amendment, it is interpreted that the court is leaning toward approving the amendment.

Earlier, on the 28th of last month, the prosecution applied for an indictment amendment reflecting the charges against Lee Jae-myung, leader of the Democratic Party of Korea, whom they consider an accomplice of the Daejang-dong group.

In November 2021, the first prosecution investigation team specified the embezzlement amount in the indictment against the group as "at least 65.1 billion KRW," and the second investigation team reaffirmed it as 489.5 billion KRW when indicting Lee in March. The purpose of the indictment amendment is to unify these figures.

However, the defense attorneys opposed, stating, "We have put a lot of effort into witness examination based on the original indictment, and if the indictment is amended, it directly infringes on the right to defense," adding, "After preparing for the trial for one and a half years, it would all be in vain."

Major shareholder of Hwacheon Daeyu Asset Management, Kim Man-bae [Photo by Yonhap News]

On the other hand, the prosecution countered, "Although it may be burdensome in terms of procedural delays and could be seen as infringing on the right to defense, it does not necessarily mean increased sentencing severity."

The Daejang-dong group denied the charges at the first preparatory hearing for the violation of the Public Officials Conflict of Interest Prevention Act held by the same court division that morning. Only Yoo's side said they would acknowledge the facts.

They were indicted in January on charges of using internal secrets from Seongnam City and the corporation since August 2014, being selected as private developers for the Daejang-dong development project, and obtaining 788.6 billion KRW in criminal proceeds.

The prosecution requested the two cases be consolidated, as this case is a continuation of the main Daejang-dong case. However, the defense blamed the prosecution for separating the cases and requested careful handling, citing infringement of the right to defense.

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