Seoul: Prosecutors on Wednesday began to seize the assets of key convicts in a high-profile development scandal case allegedly linked to President Lee Jae Myung. The Seoul Central District Prosecutors Office announced the initiation of asset seizures, including vehicles, bonds, and other properties, from Yoo Dong-gyu, former acting president of Seongnam Development Corp., Kim Man-bae, a major shareholder of Hwacheon Daeyu, and lawyer Chung Min-yong.

According to Yonhap News Agency, the asset seizure follows a court decision in October last year, sentencing Kim and Yoo to eight years in prison each and Chung to six years. The court also ordered them to forfeit their illicit profits from a large-scale development project. The scandal revolves around claims that a limited number of unqualified private asset management companies, including Hwacheon Daeyu, gained substantial investment returns from the real estate development project in Seongnam's Daejang-dong district in 2015, during Lee's tenure as the city's mayor.

Prosecutors stated their decision to proceed with the asset seizures was due to the defendants' failure to comply with court forfeiture orders on two separate occasions. The individuals were indicted in 2021 on charges of generating 789 billion won (US$553 million) in illegal profits by manipulating the bid for the development project to favor Hwacheon Daeyu.