Prosecution Abandons Appeal in Daejang-dong Corruption Case
The prosecution has decided not to appeal the prison sentences handed down to several private businessmen involved in the Daejang-dong development project, marking a significant shift in the legal proceedings. This decision is expected to make it extremely challenging to recover the estimated hundreds of billions of won in development profits that were initially sought by the prosecution.
On the 31st of last month, the court of first instance sentenced Kim Man-bae, a major shareholder of Hwacheon Daeyu who led the Daejang-dong development project, and former Seongnam Urban Development Corporation head Yoo Dong-gyu to eight years in prison. Lawyer Nam Wook and accountant Jeong Young-hak received four and five years in prison, respectively, while lawyer Jeong Min-yong was given a six-year sentence. All of them filed appeals against their convictions. However, the Seoul Central District Prosecutors’ Office did not submit an appeal by the deadline, which was midnight on the 7th.
By not appealing, the prosecution has effectively limited the appellate court’s review to only the parts where the defendants claim they were wronged. This means there is a high likelihood that the sentences imposed in the first trial could be reduced during the appellate process. Under the principle of “prohibition of disadvantageous alteration” in the Criminal Procedure Act, if the prosecutor does not appeal, the higher court cannot impose a heavier sentence than what was given in the original trial.
The amount of restitution ordered in the appellate trial could also see a significant reduction. The Daejang-dong project, which was jointly promoted by the public and private sectors, resulted in the Seongnam Urban Development Corporation receiving 183 billion Korean won, while private businesses earned 788.6 billion Korean won. The prosecution estimated the damages to the Seongnam Urban Development Corporation at 489.5 billion Korean won and demanded restitution for that amount.
However, the court ruled that the damages could not be accurately calculated and therefore judged the case as occupational breach of trust under general law rather than the Special Act on the Aggravated Punishment. As a result, the recognized amount of breach of trust was reduced to 47.332 billion Korean won. Legal experts have expressed concerns that the discrepancy between the prosecution’s requested restitution and the court’s ruling suggests the case should be re-examined in the appellate trial.
Frontline prosecutors handling the Daejang-dong case have also released a statement, protesting that “the prosecution’s command center instructed to prohibit appeals.” This has sparked further controversy over the decision to abandon the appeal, with many questioning the rationale behind the move.
Key Points from the Case
- The prosecution chose not to appeal the prison sentences of several individuals involved in the Daejang-dong development project.
- The appellate court will only review the defendants’ claims of being wronged, potentially leading to lighter sentences.
- The amount of restitution ordered by the court was significantly lower than what the prosecution had requested.
- Legal experts believe the case may need to be contested again in the appellate trial due to the large difference in restitution amounts.
- Frontline prosecutors have raised concerns about the decision to abandon the appeal, indicating ongoing controversy within the prosecution.
This development highlights the complex interplay between legal principles, prosecutorial decisions, and the broader implications for justice and accountability in high-profile cases.