In the first trial of the Daejang-dong case, Kim Man-bae, the majority shareholder of Hwacheon Daeyu, a key figure, and former Seongnam Development Corporation Deputy Minister Yoo Dong-gyu were each sentenced to eight years in prison on the 31st. The legal community says that if the two have their convictions finalized going forward, it could have a long-term impact on President Lee Jae-myung, who has been indicted in connection with the case.
President Lee Jae-myung was indicted over the Daejang-dong case in Mar. 2023. The main charge is breach of trust. The allegation is that during his tenure as Seongnam mayor, he funneled profits from the Daejang-dong development to private operators including Kim Man-bae, causing Seongnam Development Corporation 489.5 billion won in losses. Prosecutors found that as Seongnam mayor, Lee served as the "top decision-maker" in the Daejang-dong case. Lee later came to face a single trial combining the Wirye New Town development corruption, Baekhyeon-dong development corruption, and the Seongnam FC bribery case.
However, the trial was suspended after President Lee Jae-myung won the last presidential election. On Jun. 10, the Seoul Central District Court Criminal Division 33 said it would "apply Article 84 of the Constitution and set a future date for the Daejang-dong case trial." Article 84 of the Constitution states that "the president shall not be subject to criminal prosecution during tenure except for insurrection or treason."
Much of the hearing remains in Lee's Daejang-dong trial. Only the Wirye New Town case has completed hearings, and the Daejang-dong case halted in its early stage. The Baekhyeon-dong and Seongnam FC cases have not even begun hearings.
The court also suspended the remand trial for Lee's Public Official Election Act violation case. A legal professional who previously served as a judge said, "It appears the court decided to suspend trials during President Lee's term," adding, "Resuming trials after the term ends is only natural in the interest of judicial justice."
Another legal professional said, "There is a possibility that President Lee's trial could resume after the key figures in the Daejang-dong case, including Kim Man-bae and Yoo Dong-gyu, first have their convictions finalized," adding, "If that happens, it could ultimately affect the president as well."
Meanwhile, the Seoul Central District Court Criminal Division 22, in convicting Kim Man-bae and Yoo Dong-gyu on this day, found that "this case constitutes a series of corruption crimes carried out in collusion according to a collusive relationship formed by the defendants over a long period through the provision of money and valuables."
It continued, "This conduct seriously undermined the fairness and integrity of the process for selecting the project operator, as well as the general public's trust in it, and is highly blameworthy." It also said, "The massive profits from land development that should have gone to local residents and the public created a risk of property loss by being allocated to private operators, and that risk in fact materialized." It added, "The actual damage from the crime has not been restored at all, and there were no other measures taken to remedy the damage."