A court has dismissed the request by a key figure in the scandal surrounding the Seongnam development project to reconsider its ruling to arrest him.
The Seoul Central District Court on Tuesday reviewed former acting president of Seongnam Development Corporation Yoo Dong-kyu’s court filing for a reversal regarding the legality of his arrest made earlier this month on the charge of breach of trust, but decided to turn it down.
The court issued an arrest warrant for him on October 3, citing flight risk and the possibility of destroying critical evidence.
Yoo is suspected of designing the profit distribution method of Seongnam Park, the main developer of the project, thus allowing asset management firm Hwacheon Daeyu to gain excessive profits in the lucrative project.
Yoo is also accused of allegedly receiving 800 million won in return for designing a distorted profit scheme which appears to heavily favor the asset management firm and a handful of privileged investors.