Daejang-dong Scandal Reaches Critical Phase: Prosecutors Seek 7-Year Sentence for Former Official Who Claims 'I Did It for Lee Jae-myung's Success'

The Daejang-dong Scandal: Korea's Biggest Political Corruption Case Nears Verdict

The Daejang-dong development scandal, one of South Korea's most significant political corruption cases in recent years, has reached a critical juncture as prosecutors delivered their final sentencing demands on June 27, 2025. This case, often referred to as the 'main stream' of the Daejang-dong affair, involves allegations of massive corruption in a lucrative real estate development project in Seongnam, Gyeonggi Province.

The scandal centers around allegations that private developers illegally profited from preferential treatment in the development of the Daejang-dong district, potentially causing damages worth hundreds of billions of won to the Seongnam Urban Development Corporation. What makes this case particularly explosive is its connection to Lee Jae-myung, who was Seongnam mayor during the development period and is now a major political figure in South Korea.

The prosecution's demands mark a significant milestone in a case that has captivated the Korean public for over four years, with implications that extend far beyond the courtroom into the heart of Korean politics.

Prosecutors Demand Heavy Sentences: The Scale of Alleged Corruption

On June 27, 2025, prosecutors at the Seoul Central District Court delivered their final sentencing recommendations in what has been a marathon trial lasting nearly four years. The scale of the sentences sought reflects the magnitude of the alleged corruption.

Kim Man-bae, the major shareholder of Hwacheon Daeyu Asset Management, faces the heaviest sentence demand of 12 years in prison along with a forfeiture of 611.1 billion won. Yoo Dong-gyu, former planning director of Seongnam Urban Development Corporation, faces 7 years in prison, a fine of 1.7 billion won, and forfeiture of 850 million won.

The other defendants also face substantial sentences: lawyer Nam Wook was recommended 7 years with 101 billion won forfeiture, accountant Jeong Young-hak faces 10 years with 64.6 billion won forfeiture, and lawyer Jeong Min-yong faces 5 years in prison with a 7.4 billion won fine and 3.7 billion won forfeiture.

These astronomical figures underscore prosecutors' claims that the defendants orchestrated a scheme that caused approximately 489.5 billion won in damages to the Seongnam Urban Development Corporation through their preferential treatment arrangements.

Yoo Dong-gyu's Shocking Final Statement: 'I Did It for Lee Jae-myung's Success'

Perhaps the most dramatic moment of the trial came during Yoo Dong-gyu's final statement on June 27. In a courtroom packed with media and observers, Yoo made a stunning admission that sent shockwaves through Korea's political establishment.

'The defendant received instructions from Jeong Jin-sang and Lee Jae-myung and was not in a position to make decisions in this case,' Yoo stated. 'The defendant did his best in accordance with the interests of Seongnam City and the corporation.' However, his next words were even more explosive: 'I also have responsibility for wrongdoing, and I will gladly accept punishment for that, but it was not for financial gain but for the success of Lee Jae-myung as a politician.'

This statement directly implicates Lee Jae-myung, suggesting that the former Seongnam mayor was not only aware of the arrangements but actively directing them. Yoo's claim that he acted not for personal financial gain but for political purposes adds a new dimension to the case, potentially shifting it from a simple corruption scandal to a broader question about political influence and abuse of power.

The timing of this admission is particularly significant, coming just months before the final verdict is expected to be delivered on October 31, 2025.

The Defense Strategy: Claims of Innocence and Prosecutorial Misconduct

While Yoo Dong-gyu's admission grabbed headlines, other defendants have maintained their innocence and launched fierce attacks on the prosecution's case. The defense strategies reveal deep divisions in how the case is being fought.

Lawyer Nam Wook, in his final statement, acknowledged personal responsibility while maintaining his innocence of the specific charges. 'While receiving this trial, I initially resented and hated someone, but as time passed, I realized it stemmed from my wrong actions,' he said. 'I believe you will judge what is truth and what is misunderstanding and falsehood as we have conducted this trial for a long time.'

Accountant Jeong Young-hak took a different approach, arguing that the massive profits were unexpected and resulted from external factors rather than deliberate manipulation. 'We sincerely regret and reflect on inappropriate acts as business operators and being put on trial,' he stated. 'During the Daejang-dong project, real estate conditions were poor, and the project proceeded with all public contributions required by Seongnam City and the corporation reflected, so private operators did not initially expect to gain enormous profits.'

Most significantly, the Democratic Party has launched a counter-offensive, filing complaints against prosecutors for allegedly fabricating evidence. They claim that prosecutors manipulated Excel files and other evidence to build their case, turning the trial into a broader battle over prosecutorial integrity and political justice.

Community Reactions: A Nation Divided Over Justice and Politics

The Daejang-dong case has deeply divided Korean public opinion, with reactions varying significantly across different online communities and demographic groups. The case has become a litmus test for broader attitudes toward political corruption, prosecutorial power, and partisan politics in South Korea.

On conservative-leaning communities like Ilbe and some sections of DC Inside, many users express satisfaction with the heavy sentences sought by prosecutors, viewing them as necessary accountability for what they see as massive corruption. Comments frequently emphasize the astronomical sums involved and argue that such severe punishment is needed to deter future corruption.

However, on more liberal-leaning platforms and among Democratic Party supporters, there's significant skepticism about the prosecution's case. Many users on communities like The Qoo and Nate Pann question the timing and motivations behind the prosecution, particularly given the Democratic Party's claims of evidence manipulation. Some comments reflect broader concerns about prosecutorial overreach and political weaponization of the justice system.

The generational divide is also apparent, with younger users often more focused on the systemic issues the case reveals about Korean politics and real estate development, while older users tend to focus more on the specific allegations and legal proceedings. International observers have noted how the case reflects broader tensions in Korean society about corruption, political accountability, and the role of prosecutors in democratic governance.

The Road to October 31: What's at Stake Beyond the Courtroom

As the court prepares to deliver its verdict on October 31, 2025, the implications of the Daejang-dong case extend far beyond the fate of the individual defendants. The case has become a defining moment for Korean politics, with potential ramifications for political careers, public trust in institutions, and the broader fight against corruption.

The court's decision will be closely watched not only for its immediate impact on the defendants but also for what it signals about the Korean justice system's handling of high-profile political cases. With trial records exceeding 250,000 pages, as noted by the presiding judge, this case represents one of the most complex and thoroughly documented corruption trials in Korean history.

For Lee Jae-myung and the Democratic Party, the verdict could significantly impact their political future and public standing. The case has already influenced public discourse about political corruption and accountability, regardless of the final outcome.

The international community is also watching closely, as the case reflects broader challenges facing democratic societies in addressing corruption while maintaining political stability. The Daejang-dong scandal serves as a reminder of the complex relationship between politics, business, and justice in modern democratic societies, and its resolution will likely influence how similar cases are handled in the future.

As October 31 approaches, all eyes will be on the Seoul Central District Court as it delivers what may be one of the most consequential verdicts in recent Korean political history.