Prosecutors demand 12-year term for key suspect in Seongnam development scandal

Kim Man-bae, left, and Yoo Dong-gyu / Yonhap

Prosecutors on Friday demanded a 12-year prison term for land developer Kim Man-bae, a key figure in the so-called "Daejang-dong development scandal" that occurred in Seongnam, just south of Seoul, a decade ago, during a court hearing.

Prosecutors also requested seven-year imprisonment and a fine of 1.7 billion won ($1.25 million) for Yoo Dong-gyu, another key figure who served as acting president of Seongnam Development Corp., during the hearing at the Seoul Central District Court.

The prosecution also asked the court to impose a forfeit of 611.2 billion won on Kim and a forfeit of 850 million won on Yoo.

The scandal centers on the allegations that a small number of unheard-of private asset management companies, including Hwacheon Daeyu owned by Kim, were allowed to reap astronomical investment profits from the real estate development project in Seongnam's Daejang-dong district in 2015, when President Lee Jae Myung was the city's mayor.

Kim and other developers were indicted for causing a loss of 489.5 billion won to Seongnam Development Corp.

Lee separately stood trial on charges of inflicting losses to Seongnam Development Corp. but the court indefinitely postponed his trial after his victory in the presidential election early this month.