South Korean court upholds sentences in 500 million won redevelopment scam

A South Korean appellate court has upheld suspended prison sentences for a group that defrauded development companies of 500 million won by falsely claiming they had the authority to award redevelopment demolition contracts.

The Seoul High Court Incheon Branch sentenced two primary defendants, aged 66, to three years in prison with a five-year stay of execution. Two brokers involved in the scheme received two-year prison sentences with four-year stays of execution.

According to court findings, the group used forged business cards, fake legal titles, and falsified documents—including business agreements and construction confirmation letters—to deceive victims. One defendant impersonated a legal team leader for a well-funded institution, while another falsely claimed that a cooperative leader had been arrested and that bribes had been paid to secure demolition rights.

Despite the gravity of the crime, the court dismissed appeals from both the prosecution and the defendants, noting that the primary perpetrators had reached settlements with the victims and provided compensation, including the establishment of collateral, which led the victims to express they did not desire punishment.