South Korean Court Rules Assets of Do Kwon’s Wife Not Subject to Government Confiscation

UTC by Mayowa Adebajo · 3 min read
South Korean Court Rules Assets of Do Kwon’s Wife Not Subject to Government Confiscation
Photo: Depositphotos

Evidence has now been presented in court that confirms that Kwon’s wife did use funds from her own virtual asset account to make the initial payment on some of the properties.

In the latest development surrounding the TerraUSD collapse, the wife of Terraform Labs founder Do Kwon has secured a major win against the South Korean authorities. A report by ChainCatcher on July 11, 2024, claims that a South Korean court has ruled in favor of Do Kwon’s wife, overturning the property seizure order previously in place.

This decision comes after the South Korean government attempted to seize her real estate holdings, including property shares and the right to sell her apartment.

In the eyes of the court, there must be a distinction between marital and personal property. So, it appears that the judge presiding over the case may have considered this to determine that Do Kwon’s wife acquired the disputed properties in her own name during their marriage. Interestingly, this legal distinction has just shielded her holdings from being frozen by the government as part of their inquest into Do Kwon’s business dealings.

Court Victory for Do Kwon’s Wife: Details

The assets being battled for include real estate in Seoul’s Seongsu-dong and officetel sales rights in Nonhyeon-dong. Both properties were originally seized after a 233.3 billion won ($177 million) asset preservation order was issued against Kwon. However, the court has now suspended the order that binds these properties pending final judgment.

Nonetheless, a notable turning point in the case was when the court determined that the real estate shares and officetel sales rights are the wife’s special property under Article 830(1) of the Civil Act.

According to findings, she acquired the assets in March and May 2021, but the government does not believe that. Rather, government authorities allege that Do Kwon actually owns the properties and only bought them in his wife’s name for the sake of being smart.

Following those claims, evidence has now been presented in court that confirms that Kwon’s wife did use funds from her own virtual asset account to make the initial payment on the Seongsu-dong property. That finding was enough to turn the case on its head and may have influenced the court’s decision to recognize the assets as her special property.

Implications of the Ruling

While Do Kwon himself continues to face allegations of financial misconduct, the court’s ruling expressly states that his wife’s assets can not be automatically seized. That is, based on the fact that they are simply married. This decision by the court will go a long way in showcasing the importance of separate property ownership within marriage. More so, in those types of marriages where one or both spouses might be into high-risk businesses.

The legal battle surrounding TerraUSD’s collapse continues to unfold. However, as Coinspeaker earlier reported, Do Kwon is currently on bail in Montenegro, awaiting extradition to either the US or South Korea.

The court’s recent decision hints at the complexities of this particular case and the ongoing efforts to hold every single person responsible accountable.

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