Authorities to reclaim Chun family's 5.5 billion-won land

Kyobo Asset Trust lost the first trial against the Korea Asset Management Corporation. The lawsuit was brought to oppose the KAMC’s collection of proceeds from a public auction of land owned by the family of former President Chun Doo-hwan.

On Friday, the Seoul Administrative Court dismissed all of the plaintiffs’ claims in revocation litigation for the allocation of proceeds of a public auction filed by Kyobo Asset Trust against the Korea Asset Management Corporation. The case concerns the forest land in Osan, Gyeonggi Province entrusted to Kyobo Asset Trust by the family of former President Chun Doo-hwan. The Supreme Court sentenced the former president to life in prison and a 220.5 billion won fine in 1997 on the charges of insurgency and bribery. As a result, the prosecution seized the land in 2013 to execute the judgment. However, Kyobo Asset Trust filed a lawsuit for the confirmation of the nullity of the seizure, delaying the collection of the proceeds.

So far, authorities have recovered 127.92 billion won from the former president, which amounts to 58% of the total fine. If the ruling is finalized, an additional 5.5 billion won could be recovered.


jwhite@donga.com