Home > National > Social Affairs

Key figures in Seongnam development scandal sentenced to 8-year prison terms

Published: 31 Oct. 2025, 17:48 Updated: 31 Oct. 2025, 18:27

This composite image shows file photos of Kim Man-bae, left, major shareholder of asset management firm Hwacheon Daeyu, and Yoo Dong-gyu, former acting president of Seongnam Development Corporation. [YONHAP]

Two key figures in a development corruption scandal linked to President Lee Jae Myung were sentenced to eight-year prison terms each on Friday.

The Seoul Central District Court handed down the sentences to Yoo Dong-gyu, former acting president of Seongnam Development Corporation, and Kim Man-bae, major shareholder of asset management firm Hwacheon Daeyu, on charges including breach of duty.

The scandal centers on allegations that a small number of unheard-of 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.

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

They were also accused of inflicting losses worth 489.5 billion won to Seongnam Development Corporation.

In addition to Yoo and Kim, the court sentenced two lawyers and an accountant involved in the case to prison terms ranging from four to six years.

All five were placed under custody.

Lee separately stood trial on charges of inflicting losses to Seongnam Development Corporation, but the court indefinitely postponed his trial after his victory in the presidential election in June.

Yonhap