Seoul: Prosecutors have called for a 12-year prison sentence for Kim Man-bae, a central figure in the Daejang-dong development scandal that unfolded in Seongnam, just south of Seoul, a decade ago. This request was made during a court hearing held at the Seoul Central District Court.
According to Yonhap News Agency, prosecutors also sought a seven-year imprisonment term and a fine of 1.7 billion won (US$1.25 million) for Yoo Dong-gyu, who was the acting president of Seongnam Development Corp. Furthermore, the prosecution asked for a forfeit of 611.2 billion won to be imposed on Kim and a forfeit of 850 million won on Yoo.
The controversy revolves around allegations that a select few private asset management companies, including Hwacheon Daeyu owned by Kim, were permitted to gain substantial investment profits from the real estate development project in Seongnam's Daejang-dong district in 2015, during the tenure of President Lee Jae Myung as the city's mayor.
Kim, along with other developers, faces charges of causing a loss of 489.5 billion won to Seongnam Development Corp. Meanwhile, Lee has been separately tried on charges of inflicting financial damage to Seongnam Development Corp., but the court has indefinitely postponed his trial following his recent victory in the presidential election.