▲ This composite image shows file photos of Kim Man-bae (R), major shareholder of asset management firm Hwacheon Daeyu; Yoo Dong-gyu (L), former acting president of Seongnam Development Corp.; and lawyer Chung Min-yong. (Yonhap)

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Prosecutors seize assets of key convicts in high-profile development scandal

SEOUL, Feb. 4 (Yonhap) -- Prosecutors on Wednesday began to seize the assets of key convicts in a high-profile development scandal case allegedly linked to President Lee Jae Myung.

The Seoul Central District Prosecutors Office said it has started to seize vehicles, bonds and other assets registered under Yoo Dong-gyu, former acting president of Seongnam Development Corp., as well as Kim Man-bae, a major shareholder of Hwacheon Daeyu, and lawyer Chung Min-yong.

The action follows a court ruling in October last year sentencing Kim and Yoo to eight years in prison each, and Chung to six years, along with orders to forfeit their illicit profits from a massive development project.

The scandal centers on allegations that a small number of unqualified private asset management companies, including Hwacheon Daeyu, were allowed to reap astronomical investment profits from the real estate development project in Seongnam's Daejang-dong district in 2015, when Lee was the city's mayor.

Prosecutors said they decided to proceed with the asset seizures as the defendants failed twice to comply with court forfeiture orders.

They were indicted in 2021 on charges of making 789 billion won (US$553 million) in illegal profits by designing the bid for the development project in a way that favored Hwacheon Daeyu.

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