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Former special counsel prosecutor gets 7 years in bribery case linked to Daejang-dong scandal

Published: 13 Feb. 2025, 16:41

LEE SOO-JUNG
[email protected]

Former special counsel prosecutor Park Young-soo, convicted of bribery charges, attends a ruling at the Seoul Central District Court in southern Seoul on Feb. 13. [YONHAP]

A Seoul court sentenced former special counsel prosecutor Park Young-soo to seven years in prison on Thursday for receiving millions of won from land developers tied to the Daejang-dong real estate project in Seongnam, Gyeonggi.

The Seoul Central District Court also ordered Park to pay a fine of 500 million won ($345,332) and an additional 150 million won forfeiture.

The court convicted Park of bribery charges, acknowledging that he had accepted some 300 million won from lawyer and land developer Nam Wook to help fund his campaign to lead the Korean Bar Association in 2014. His action violated the Act on the Aggravated Punishment of Specific Economic Crimes.

The court said that Park “accepted 300 million won for his own personal benefit despite his position as Woori Bank’s board chairman and non-executive director, which requires high moral ethics based on a transparent culture.”

“Heavy punishment is needed as Park harmed public trust in a financial institution’s transparency and disrupted the sound trading system of the financial market,” the court added.

However, the court acquitted Park of charges that he was promised 5 billion won and had already received an additional 500 million won in return for helping private developers obtain a letter of intent for loans from Woori Bank while serving as the board's chairman.

The court also dismissed an allegation that Park pocketed 1.1 billion won through his daughter, who worked at land development corporation Hwacheon Daeyu, which allegedly earned 451 billion won in gross profit from its involvement in the Daejang-dong project.

The Daejang-dong scandal is related to one of the five court proceedings involving Democratic Party (DP) leader Lee Jae-myung.

Lawyer Nam, in a separate trial from Park's, testified that another real estate developer, Cheonhwa Dongin No. 1, belonged to the Seongnam mayor’s office, then occupied by current DP chief Lee, citing Kim Man-bae, the owner of Hwacheon Daeyu, as his source.

Yang Jae-sik leaves the Seoul Detention Center in Gyeonggi on June 30 in 2023. [YONHAP]

The court also handed down a sentence of five years in prison and 300 million won in fines to lawyer Yang Jae-sik, who was indicted on the same charges as Park. Yang should also pay the government a forfeiture of 150 million won.

The court acknowledged that Park and Yang conspired in the bribery.

“Yang actively participated in the crime and assisted Park by demanding that lawyer Nam give them money and highly priced valuables and by receiving the bribe himself,” The court said.

The court canceled Park’s release on bail and issued an arrest warrant against Yang, who was deemed a flight risk. Both Park and Yang were put in detention after the ruling.

Last November, prosecutors sought 12 years of prison and 1.6 billion won in fines for Park and seven years of jail and 600 million won in fines for Yang.

Park and Yang reportedly maintained a close relationship for over 20 years. Yang joined the special counsel team that investigated former President Park Geun-hye for corruption on prosecutor Park’s recommendation.

BY LEE SOO-JUNG [[email protected]]