Prosecutors Request 5 Years in Prison for Baekhyeon-dong Developer in Second Trial on Embezzlement and Breach of Trust Charges

First trial resulted in a 2-year prison sentence suspended for 4 years, with acquittal on key charges... Second trial verdict on November 28.

 [Yonhap News Photo]

Prosecutors have requested a 5-year prison sentence for Baekhyeon-dong developer Jung Ba-wool (69), chairman of Asia Developer, in his second trial on charges of hundreds of billions of won in embezzlement and breach of trust. The verdict is scheduled for November 28.

The Seoul High Court's Criminal Division 1 (Presiding Judge Yoon Sung-sik) held the final hearing for Chairman Jung's appeal on October 31, who was indicted on charges including violation of the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (Breach of Trust).

"We request the court to dismiss the defendant's appeal and uphold the original sentence request," the prosecution asked the court.

The prosecution had requested a 5-year prison sentence and a fine of 200 million won in the first trial as well. However, in April, the first trial court sentenced him to 2 years in prison, suspended for 4 years.

Jung's legal team argued, "Please consider that the defendant successfully completed the project by cooperating with the Korea Food Research Institute to secure funds for the Food Research Institute site, which was part of the relocation of public institutions to regional areas and initially had no interest. Please also deeply consider that the defendant has fully compensated for the damages stated in the indictment."

Regarding the charge of embezzling 15.6 billion won in the process of selecting Yeonglim General Construction and others as contractors for the Baekhyeon-dong project and then subcontracting, the defense stated, "The construction and sales prices were not excessive at all, and payments for construction and sales were made within the scope planned in the financial statements."

Regarding the suspicion of handing over 7.7 billion won in embezzled funds to Kim In-seop, former CEO of Korea Housing Technology, the 'Baekhyeon-dong lobbyist,' to seek favors for permits related to the development project, the defense stated, "While it is true that I asked Kim In-seop for help at the beginning of the project to facilitate smooth communication, it is entirely unrelated to any quid pro quo for lobbying. The first trial acquitted on this part for legal reasons, but we ask you to consider that the facts also do not constitute lobbying."

Jung, given the opportunity for final remarks, said, "I am ashamed of the social disturbance I caused and am reflecting more deeply than ever before."

The court stated, "We will announce the verdict on November 28 at 2 PM."

Chairman Jung is the largest shareholder of Seongnam R&D PFV, the developer of the Baekhyeon-dong project promoted by Lee Jae-myung when he was the mayor of Seongnam. He was indicted in June 2023 on charges of embezzling and breaching trust a total of 48 billion won from Seongnam R&D PFV, Asia Developer, and Yeonglim General Construction, which he effectively owned.

In April, the first trial found him guilty of breach of trust against Seongnam R&D PFV and embezzlement against Asia Developer, but acquitted him on key charges related to seeking favors for permits. Yonhap News