Gwangju District Court's Suncheon Branch

The Pungdeok district in Suncheon. [Herald DB]
The Pungdeok district in Suncheon. [Herald DB]

A court has handed down heavy sentences to association officials and a construction businessman who exchanged large sums of illicit money during an urban development project in Suncheon's Pungdeok district.

The first criminal division of Gwangju District Court's Suncheon Branch, presided over by Chief Judge Kim Yong-gyu, sentenced the Pungdeok district urban development association's chairman, identified only as A, to six years in prison, a fine of 100 million won ($75,400) and a surcharge of 66 million won. A faced charges including violations of the Act on the Aggravated Punishment of Specific Economic Crimes.

A, who served as association chairman overseeing the project's operations, was accused of receiving 3 million won per month from the head of the project developer, totaling 105 million won.

However, the court found it difficult to establish that irregular cash payments had been made and recognized only 66 million won of the 105 million won A received as a bribe.

The court also sentenced association executive B to eight years in prison, a fine of 200 million won and a surcharge of 200 million won, and executive C to six years in prison, a fine of 100 million won and a surcharge of 100 million won. Both B and C were found to have received bribes of 200 million won and 100 million won, respectively.

Construction businessman D received nine years in prison and a surcharge of 2.5 billion won. Accomplice E was sentenced to one year and six months in prison, suspended for three years, while project developer head F received two years in prison, suspended for four years.

"When corruption infiltrates an urban development association, it not only leads to unnecessary cost increases and unfair contract terms, but can also cause harm to innocent association members," the court said.

D was indicted alongside an employee on charges including accepting 1 billion won in exchange for promising preferential rights to purchase substitute land parcels.

In September 2024, prosecutors launched an investigation into irregularities surrounding the Pungdeok district urban development project in Suncheon and indicted six people — including the association chairman, executives and a construction businessman — on charges of bribery under the aggravated punishment act and violations of the Attorney-at-Law Act.

The Pungdeok district development project, often described as prime real estate for its location facing Suncheon Bay National Garden, is a privately led development plan to build approximately 2,500 apartment units along with cultural facilities on a 550,000-square-meter site in Pungdeok-dong, Suncheon.


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