Seongnam City is continuing its asset recovery efforts against individuals implicated in the Daejang-dong development scandal, even after discovering that some of their bank accounts were empty.
According to the city on the 11th, authorities are expanding their investigation to include real estate, securities, rental deposits, commercial lease payments, and apartment sales proceeds held in trust accounts.
This year alone, the city has filed 10 additional provisional seizure and injunction requests with the court—all of which have been granted. These include three real estate properties linked to Jeong Young-hak, a central figure in the scandal, two claims against Kim Man-bae's assets, and five real estate and bond claims connected to Nam Wook.
The key measure among these actions is the provisional seizure of profit distribution rights from Hana Asset Trust, which was effectively controlled by Kim Man-bae through Hwacheon Daeyu Asset Management. These rights pertain to apartment sales proceeds from the development project.
Based on prosecution investigation reports, the city argues that Hana Asset Trust served as the project operator for five blocks in the Daejang-dong development, with Hwacheon Daeyu connected as the trustor and beneficiary.
According to a January 2023 prosecution report, investigators determined there was a high likelihood that approximately 82.8 billion won in unsettled proceeds would flow into the trust account as of December 2022, prompting them to take collection preservation measures. The actual payment status and remaining claims are currently being verified through third-party debtor statement procedures.
"We are closely monitoring and awaiting Hana Asset Trust's response, as it will serve as crucial basis for subsequent actions," a city official said.
Meanwhile, Seongnam City is also pursuing a lawsuit to invalidate dividend resolutions. At the first hearing held at the Seongnam branch of Suwon District Court on the 10th, Seongnam Urban Development Corporation argued that approximately 400 billion won in dividends distributed to private contractors by Seongnam Uittul between 2019 and 2021 violated company articles and commercial law.