Suwon Land Worth KRW 2.2 Billion in the Wife's Name of "Daejang-dong Kim Man-bae" Frozen; Court Grants Provisional Attachment

Seongnam Urban Development Corporation Sues to Revoke Gift and Recover KRW 2.2 Billion

Court Unexpectedly Grants Corporation's Provisional Attachment Request

Corporation: "Wife Also a Cheonhwa Dongin Director; She Knew of the Breach of Trust

A court has ordered the provisional attachment of land in Suwon registered in the name of the spouse of Kim Man-bae, a private developer in the Daejang-dong development project, to secure a claim worth KRW 2.2 billion. The measure preserves the property in preparation for Seongnam Urban Development Corporation's efforts to recover damages from Kim and his associates.

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

Seongnam Urban Development Corporation in Gyeonggi Province announced on November 11 that the Seongnam Branch of the Suwon District Court had approved, on November 9, its application for the provisional attachment of land in Gwonseon-gu, Suwon, owned by Kim's spouse, identified as Ms. A. On October 16, the corporation filed a lawsuit against Ms. A seeking to cancel the gift contract and recover KRW 2.2 billion, alleging a fraudulent transfer, and also applied for provisional attachment.

According to the corporation, in October 2021, while prosecutors were investigating allegations related to Daejang-dong, Kim transferred KRW 2.2 billion from Cheonhwa Dongin No. 2, which he effectively controlled, to Ms. A's account. The corporation says Ms. A used the money to buy the land for KRW 2.2 billion in October 2022 and registered ownership in her name.

The corporation argues that Kim reduced the assets available to satisfy his obligations by transferring funds to his spouse while facing liability for damages. It says the transfer constitutes a fraudulent act that makes it harder for the corporation, as a creditor, to collect its claim. The corporation also believes Ms. A would have known about Kim's assets and liabilities because she serves as an inside director of Cheonhwa Dongin No. 2.

Whether these claims are valid will be determined in the main lawsuit. The provisional attachment is a measure to preserve assets for collection of the claim; it is not a final determination of whether the gift constituted a fraudulent act or whether KRW 2.2 billion must be returned.

The corporation said that, including this land, it has pursued a total of 14 real estate preservation measures covering 18 properties to secure assets that could be used to satisfy the liabilities of those involved in the Daejang-dong case. The estimated market value of the properties is approximately KRW 100 billion, according to the corporation's own estimate.

The corporation plans to continue tracing assets held under borrowed names or concealed by those involved in the case and to consider legal action, including lawsuits, against any additional assets it identifies.

Mayor Shin Sang-jin said, "The court's decision to approve the provisional attachment is an entirely fair and commonsense judgment that the real estate purchased with ill-gotten gains acquired unfairly needs to be frozen." He added, "We will continue to make every effort to return the assets of Seongnam citizens to them."

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