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2 central figures in Daejang-dong scandal acquitted on appeal

Published: 08 Apr. 2025, 17:34

Kim Man-bae, a major shareholder of private asset management firm Hwacheon Daeyu, speaks to reporters outside Suwon High Court in Suwon, Gyeonggi, on April 8. [SON SUNG-BAE]

Kim Man-bae, the major shareholder of private asset management firm Hwacheon Daeyu, and Choi Yoon-gil, former chairman of the Seongnam City Council, were acquitted Tuesday in their appeals trial on bribery charges tied to the Daejang-dong land development scandal.

The Suwon High Court's Criminal Division overturned the lower court ruling, finding both defendants not guilty. The court acknowledged that money had changed hands between the two but ruled that the exchange did not exceed the bounds of legitimate political activity.

Kim had been accused of offering bribes to Choi in 2012 in exchange for passing a municipal ordinance to establish the Seongnam Development Corporation, a key entity later involved in the controversial Daejang-dong project. Prosecutors alleged that Choi helped pass the ordinance in January 2013 by organizing a quorum in favor of the bill after opposition lawmakers left the council chamber.

Following the success of the Daejang-dong development project in 2021, Kim reportedly appointed Choi as vice president of Hwacheon Daeyu and provided him with roughly 80 million won ($59,400) in compensation, including a corporate card and salary. A separate performance bonus agreement worth 4 billion won had also been discussed, according to the prosecution.

In the first trial, the lower court accepted the prosecution’s argument and sentenced Kim to two years and six months in prison, and Choi to four years and six months. The court also ordered the forfeiture of 80.3 million won. However, both men remained free on bail at the time.

The original verdict cited Choi’s support for the ordinance after leaving his political party and his subsequent backing of then-Seongnam Mayor Lee Jae-myung’s re-election campaign as circumstantial evidence supporting the bribery charge.

Choi Yoon-gil, former chairman of the Seongnam City Council, leaves Suwon District Court in Suwon, Gyeonggi, after his first trial on Feb. 14. 2024. [YONHAP]

However, the appellate court rejected that reasoning, finding that while Choi had engaged with Daejang-dong residents and took part in protest planning, these actions were consistent with the normal duties of a city council member and did not constitute improper conduct. The court also ruled that the revote on the ordinance in 2013 did not clearly violate legislative procedures.

“In the absence of a wrongful act, the bribery charge against Kim cannot stand,” the court said.

Kim faces six other criminal cases, including the ongoing appeal of a separate bribery charge involving a 5 billion won severance payment to the son of former lawmaker Kwak Sang-do, for which he was also acquitted in the first trial.

Kim is also on trial at the Seoul Central District Court for allegedly colluding with Yoo Dong-gyu, former planning director of the Seongnam Development Corporation, and private developer Nam Wook to cause 489.5 billion won in losses to the city through the Daejang-dong project.

Democratic Party leader Lee, who was mayor of Seongnam at the time of the project’s approval, was indicted in March 2023 in connection with the case. He is being tried separately alongside former aide Jeong Jin-sang.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.

BY SON SUNG-BAE [[email protected]]