Nam Uk Seeks to Lift $50 Billion Asset Freeze

It was confirmed on the 14th that Nam Uk, a private developer associated with the "Daejang-dong case," asked if the prosecution co...

It was confirmed on the 14th that Nam Uk, a private developer associated with the "Daejang-dong case," asked if the prosecution could remove the freeze on hundreds of billions of won in assets that had been frozen. Previously, the prosecution had implemented provisional attachment measures to prevent the unauthorized disposal of assets believed to be proceeds from the Daejang-dong development scandal. However, the first trial resulted in a zero-won confiscation sentence for Nam, and the prosecution decided not to appeal, thereby removing the legal grounds for keeping the freeze in place.

The Daejang-dong investigation unit of the Seoul Central District Prosecutors’ Office temporarily seized assets valued at roughly 207 billion won, including properties, structures, and deposits under real or fictitious names belonging to Nam, Kim Man-bae, Jeong Young-hak, and others, in two phases between 2022 and 2023. It was reported that Nam's blocked assets amounted to approximately 50 billion won.

However, the initial trial in the Daejang-dong case sentenced Nam to four years in prison on the 31st of last month, but did not mandate confiscation. Despite the prosecution's request for around 101 billion won in confiscation due to alleged violations of the Conflict of Interest Prevention Act, the court found him not guilty and dropped the charges.

The investigative team had intended to challenge the seizure amount once more, but the prosecution decided to drop the appeal after receiving instructions from Acting Prosecutor General Noh Man-seok. With the zero-won confiscation now officially confirmed, Nam's side has requested the prosecution, "Can the temporary seizure be removed?" Legal experts believe that in addition to Nam, other suspects involved in the Daejang-dong case, including Kim and Jeong, may also seek the return of their frozen assets as a result of the prosecution's decision to abandon the appeal.

Noh, who caused the "prosecutorial chaos" by dropping the appeal, stepped down on the same day. Koo Ja-hyun (52, 29th class at the Judicial Research and Training Institute), head of the Seoul High Prosecutors' Office, was named the new Deputy Prosecutor General and acting Prosecutor General.

◇Prosecution: "No Definite Legal Basis to Keep Confiscation Funds Frozen Following the Withdrawal of an Appeal"

The prosecution initially blocked about 207 billion won in assets believed to be proceeds from the Daejang-dong case. This involved roughly 50 billion won from Nam, 120 billion won from Kim Man-bae, and 25 billion won from Jeong Young-hak. It is reported that Nam's side did not ask about the total amount that was frozen, but rather specifically questioned whether they could reclaim a 30 billion won real estate property in Yeoksam-dong, Gangnam, which is currently under legal dispute. This indicates that they are thinking about lifting the temporary seizure. A prosecution representative said, "We are examining the issue following Nam's inquiry," and added, "There is currently no clear legal foundation to maintain the freeze."

Legal professionals stated, “The prosecution's decision to drop the appeal has raised worries that billions of won in illicit funds might be returned to the Daejang-dong suspects.” In the initial trial, the prosecution sought the seizure of 781.4 billion won, but the court approved only 47.3 billion won. This comprised 42.8 billion won provided by Kim and Yoo Dong-gyu, along with 3.7 billion won in bribes exchanged between Nam and Jeong Min-yong. The prosecution had the opportunity to challenge the remaining 730 billion won during the second trial, but by withdrawing the appeal, they guaranteed that no further seizure beyond the 47.3 billion won would be mandated.

Noh Man-seok, who stepped down on the 14th taking responsibility for abandoning the appeal, expressed during his farewell event, “It is regrettable to perceive prosecutors’ concerns as insubordination or collective behavior,” and called on the Ministry of Justice and the ruling party to “stop discussing disciplinary measures against prosecutors.” His comments suggested that the prosecutors' reaction to the Daejang-dong appeal abandonment was due to worries about the prosecution's effectiveness and political impartiality, rather than disciplinary matters.

Nevertheless, Noh did not offer details about the situation surrounding the withdrawal of the appeal or claims of outside influence from the Ministry of Justice. In an earlier conversation with journalists, he had subtly admitted to administrative pressure, saying, "The indictments from the previous administration became an issue under the current one, and although they tried to remove them, we were unable to."

Koo Ja-hyun, who has recently been named Deputy Prosecutor General and is serving as acting Prosecutor General, said, "I have accepted this significant responsibility during a challenging period," and highlighted, "My main focus is to stabilize the prosecution and ensure it carries out its duties properly."