Second Trial Begins for Baekhyeon-dong Developer on Embezzlement and Breach of Trust Charges
Prosecution and Developer Asked to Clarify Positions
Next Hearing Scheduled for October 31
The appellate trial has begun for Jung Paul, Chairman of Asia Developer and the Baekhyeon-dong developer, who was sentenced to a suspended prison term in the first trial on charges of embezzlement and breach of trust amounting to tens of billions of won.
On the 29th, the Criminal Division 1 of the Seoul High Court (Presiding Judge Yoon Sung-sik) held the first hearing of the second trial for Chairman Jung, who was indicted on charges including violation of the Act on the Aggravated Punishment of Specific Economic Crimes (breach of trust).
Both the prosecution and Jung's legal team announced that they were appealing the first trial verdict, citing factual errors, misinterpretation of the law, and unfair sentencing.
The court requested clarification from both sides on certain charges. This included the embezzlement charge related to subcontracting and the application of breach of trust regarding donations. Clarification is a procedure in which the court gives the parties an opportunity to state their opinions and urges them to provide evidence regarding factual or legal matters.
The court also decided to re-examine the charge of bribery for solicitation (providing money or valuables to request a favor), for which Chairman Jung was found not guilty in the first trial.
The court stated, "At first glance, if the same amount is involved, bribery or breach of trust through bribery is punishable, but bribery for solicitation is not, which may raise doubts," and added, "If either side has additional arguments to make on this point, please supplement your claims."
The next hearing will be held on the morning of October 31.
Chairman Jung was the largest shareholder of Seongnam R&D PFV, the developer of the Baekhyeon-dong project promoted during President Lee Jaemyung's tenure as mayor of Seongnam. In June 2023, he was put on trial on charges of embezzling and committing breach of trust totaling 48 billion won from Seongnam R&D PFV, Asia Developer (which he effectively owned), and Younglim General Construction.
In April, the first trial found Chairman Jung guilty of breach of trust related to Seongnam R&D PFV and embezzlement from Asia Developer, sentencing him to two years in prison with a four-year suspended sentence.
However, regarding the charge that he handed over 7.7 billion won of embezzled funds to Kim Inseop, the former CEO of Korea Housing Technology and Baekhyeon-dong lobbyist, the court found him not guilty, stating, "Since there is no punishment provision for bribery for solicitation, it is difficult to recognize an unlawful intent to acquire for the benefit of the company through such bribery."
Hot Picks Today
"Stocks Are Not Taxed, but Annual Crypto Gains Over 2.5 Million Won to Be Taxed Next Year... Investors Push Back"
- "Even With a 90 Million Won Salary and Bonuses, It Doesn’t Feel Like Much"... A Latecomer Rookie Who Beat 70 to 1 Odds [Scientists Are Disappearing] ③
- "Who Is Visiting Japan These Days?" The Once-Crowded Tourist Spots Empty Out... What's Happening?
- "Am I Really in the Top 30%?" and "Worried About My Girlfriend in the Bottom 70%"... Buzz Over High Oil Price Relief Fund
- "It Has Now Crossed Borders": No Vaccine or Treatment as Bundibugyo Ebola Variant Spreads [Reading Science]
Chairman Jung was also found not guilty of the charge of embezzling 15.6 billion won by selecting Younglim General Construction as the contractor for the Baekhyeon-dong project and then subcontracting the work, as well as the charge of breach of trust for diverting approximately 5 billion won in company funds as a donation to a non-profit organization where his wife serves as chairperson.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
