Seongnam Urban Development Corporation Sues Kim Man-bae's Spouse for 2.2 Billion Won... Speeds Up Daejang-dong Asset Recovery

Transferred 2.2 billion won to spouse during probe... used to buy land in Suwon

Provisional measures sought against 18 Daejang-dong-related properties... estimated value of 100 billion won

Mayor Shin Sangjin: "We won't let them take even a single won meant for residents"

Seongnam Urban Development Corporation in Gyeonggi Province has filed a lawsuit seeking the return of 2.2 billion won from the spouse of Kim Man-bae, a private-sector developer in the Daejang-dong project. The corporation is tracing the Kim family’s assets and speeding up recovery proceedings to recoup losses incurred during the development project.

A view of Seongnam Urban Development Corporation. Courtesy of Seongnam City.

Seongnam Urban Development Corporation (CEO Lee Jaeyul) said on October 16 that it would file a lawsuit with the Seongnam Branch of the Suwon District Court to revoke a fraudulent transfer involving the 2.2 billion won Kim sent to his spouse. The corporation believes the money was used to purchase land in Gwonseon-gu, Suwon, Gyeonggi Province, in the spouse’s name.

According to the corporation, in October 2021, while prosecutors were investigating allegations related to the Daejang-dong development project, Kim transferred 2.2 billion won from Cheonhwa Dongin No. 2, which he effectively controlled, to his spouse’s account. In October 2022, the spouse used the money to purchase land in Gwonseon-gu, Suwon, for 2.2 billion won and registered ownership in their own name.

The corporation determined that this transfer of funds constituted a fraudulent act that made it difficult for creditors to exercise their rights. It says Kim transferred assets to his spouse, reducing the assets available to satisfy claims, while facing substantial liability for damages related to the Daejang-dong development project.

The corporation believes that Kim’s spouse would have had sufficient knowledge of Kim’s financial situation and debts, particularly since the spouse served as an inside director of Cheonhwa Dongin No. 2.

The corporation is seeking to revoke the gift agreement and recover 2.2 billion won from the spouse. It has also applied for a provisional attachment on real estate worth 2.2 billion won to prevent the land from being sold while the case is being heard. The lawsuit is part of the corporation’s legal efforts to recover losses incurred in connection with the Daejang-dong development project.

Prosecutors previously indicted Kim and others, alleging that the Daejang-dong development project caused approximately 489.5 billion won in financial losses, including dividend profits that Seongnam Urban Development Corporation should have secured.

In the first-instance ruling in the criminal case, handed down on October 31, 2025, the court acknowledged that the corporation had suffered financial losses. It assessed the losses at approximately 112.8 billion won.

The corporation maintains that Kim should be liable for damages of at least 112.8 billion won. It is continuing to pursue provisional attachments and civil lawsuits involving the assets of Kim and other people connected to the Daejang-dong case.

The scope of assets targeted for recovery is also expanding. Including the application for a provisional attachment on the Suwon land, the corporation has sought a total of 14 provisional measures involving real estate against people connected to the Daejang-dong case, covering 18 properties. The corporation estimates the market value of the properties at approximately 100 billion won.

However, a provisional attachment restricts the disposal of assets to help recover a claim in the future; whether the assets are ultimately recovered, and in what amount, will depend on the outcome of the lawsuit.

The corporation plans to continue tracing assets suspected of being held under nominees’ names or concealed by defendants in the Daejang-dong criminal case, including Kim. If additional assets are identified, it plans to take necessary legal action, including applying for provisional attachments and seeking damages.

Seongnam Mayor Shin Sang-jin previously said, "We will take every necessary measure to ensure that those who have broken the law cannot take even a single won that should go to Seongnam residents," adding, "We will mobilize all available resources to protect residents’ rights to the very end and establish social justice."

This content was produced with the assistance of AI translation services.