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Seongnam City Secures 40 Billion Won Provisional Seizure of Nam Wook's Gangnam Real Estate After Appeal

[비즈한국] As confirmed by Bizhankook, a company controlled by lawyer Nam Wook, who was convicted in the Daejang-dong development corruption trial, has recently had its real estate assets in Yeoksam-dong, Gangnam-gu, Seoul, frozen. Seongnam City, Gyeonggi-do, applied for a provisional seizure last December to secure claims for damages caused by the illegal activities of lawyer Nam Wook, who is involved in the Daejang-dong scandal. However, the court initially rejected the request, stating that the prosecutor's asset preservation order had already been granted. After appealing the initial dismissal, Seongnam City successfully obtained a provisional seizure order on the condition of depositing 5 billion won with the court.

According to Bizhankook’s reporting, the Seongnam Development Corporation (SDC) obtained an injunction on the 6th, following an appeal against the dismissal of its provisional seizure application regarding rights to real estate in Yeoksam-dong, Gangnam-gu, Seoul, currently held in trust by NSJPM Co., Ltd. The court granted the order on the condition that the corporation deposit 5 billion won. Previously, the corporation had applied for a provisional seizure last December to freeze the right to request a transfer of ownership and monetary claims that NSJPM held with the real estate trust company. The intent was to secure 40 billion won in damages or return of unjust enrichment resulting from illegal activities.

The Seoul Southern District Court had initially dismissed the provisional seizure application on the grounds that the prosecutor's request for asset preservation against lawyer Nam's property had been granted in November 2022, making it unnecessary to freeze additional assets. However, the appellate court ruled that the grounds for the preservation claim and the necessity of such measures had been sufficiently demonstrated, thereby granting the provisional seizure.

Lawyer Nam Wook is the de facto largest shareholder of NSJPM. As of the end of 2024, he held a 79.68% stake in NSJ Holdings (formerly Cheonhwa Dongin No. 4), which is the parent company of NSJPM. He also served as the company's CEO from January 2021, when NSJPM was established, until July of the following year. The real estate in Yeoksam-dong, Gangnam-gu, Seoul—which is the subject of this provisional seizure—was purchased by NSJPM for 30 billion won in April 2021. Originally home to a gas station, the building was demolished early this year and is reportedly currently being used as a parking lot.

With this, the Seongnam Development Corporation has frozen 557.3 billion won in assets belonging to private developers involved in the Daejang-dong scandal. Out of 14 applications for provisional seizure and injunctions filed by the court last December against four private developers (Kim Man-bae, Nam Wook, Jeong Young-hak, and Yoo Dong-gyu), 13 cases (totaling 557.3 billion won) have been granted so far. The remaining case (500 million won) is awaiting a court decision. Lawyer Nam Wook has seen 4 applications for provisional seizure and injunctions granted, totaling 82 billion won, including two injunctions prohibiting the disposal of real estate in Cheongdam-dong, Seoul and Jeju, the 40 billion won in rights to the NSJPM real estate, and 30 billion won in bank deposits at NSJ Holdings.

Last December, when the request for provisional seizure of the NSJPM real estate rights was dismissed, Seongnam Mayor Shin Sang-jin urged the court to grant the appeal, stating, "Most courts recognize the urgency and necessity of provisional seizures and issue them, but only the Seoul Southern District Court made a different judgment. It is truly regrettable." He added, "The Daejang-dong group is waiting for the prosecutor's asset preservation order to be lifted and has even filed for its cancellation. For the court to dismiss the provisional seizure by saying, 'The prosecution is already holding it, so it's fine,' is an ivory-tower decision that ignores reality and is tantamount to abandoning an appeal, effectively creating an escape route for criminals."

Meanwhile, the prosecution had sought to seize 101 billion won, claiming Nam Wook had gained unjust enrichment from the Daejang-dong development, but the court did not accept this last October and sentenced him to four years in prison instead. As the prosecution abandoned its appeal, the forfeiture amount was effectively set to zero. Currently, lawyer Nam’s side is demanding the release of the assets frozen by the prosecution, which were intended to be seized upon the final determination of criminal proceeds.