Prosecutors Form 16-Member Special Investigation Team for 'Daejang-dong Development Favoritism Allegations'... Yoon Dong-gyu and Others Subject to Travel Restrictions

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyung-min] On the 29th, the prosecution quickly formed a dedicated investigation team to focus on the so-called 'Daejang-dong Development Special Favoritism Allegations' and began moving swiftly.

The Seoul Central District Prosecutors' Office announced on the 29th that under the direction of Deputy Chief Prosecutor Kim Tae-hoon, it had formed a dedicated investigation team consisting of 16 prosecutors and accounting analysis investigators from the Supreme Prosecutors' Office. It is reported that there was a separate directive from Prosecutor General Kim Oh-soo.

The dedicated investigation team is composed of all prosecutors from the Economic Crime Criminal Division (including 9 prosecutors including the chief prosecutor), 3 prosecutors from the Public Investigation Division 2 who handled cases related to violations of the Public Official Election Act, 1 prosecutor from the Anti-Corruption and Violent Crime Cooperation Division, and 3 dispatched prosecutors. The total size is 16 members. With the formation of this 'mammoth'-scale dedicated investigation team, the prosecution's investigation is expected to accelerate.

A prosecution official stated, "We plan to swiftly ascertain the substantive truth through fair and thorough investigation in accordance with due process, and strictly prosecute those involved."

Minister of Justice Park Beom-gye also said while arriving at the Government Complex Gwacheon on the morning of the same day, "There was the Prosecutor General's will to investigate swiftly and without bias," and "Upon the Prosecutor General's request, I immediately approved the formation of the special investigation team."

The Economic Crime Criminal Division will investigate the overall promotion process of the Daejang-dong development project, the roles of then Seongnam Mayor and current Gyeonggi Governor Lee Jae-myung, and allegations of breach of trust. It will also investigate suspicions regarding the activities of the legal advisory group of asset manager Hwacheon Daeyu.

The Public Investigation Division 2 will handle the case in which Lee Jae-myung’s presidential campaign filed complaints against People Power Party officials and others for false information disclosure charges.

The Economic Crime Criminal Division recently imposed travel bans on several key figures, including former Seongnam Urban Development Corporation Planning Director Yoo Dong-gyu.

After Lee Jae-myung was elected Seongnam Mayor in 2010, Yoo served as the Planning Director of the Seongnam Facilities Management Corporation and in 2014 as the Planning Director of the Seongnam Urban Development Corporation. From 2015 to 2018, when the Daejang-dong development was in full swing, he acted as the Acting President of the Seongnam Urban Development Corporation, overseeing the entire Daejang-dong development project and is known as the person who designed the dividend profit structure.

At that time, the 'Seongnam Utddeul' consortium, deeply connected with Hwacheon Daeyu Asset Management (Hwacheon Daeyu), was selected as the private developer for the Daejang-dong development.

The prosecution is expected to soon summon former Director Yoo and others to verify the selection process of the Seongnam Utddeul consortium and the design process of the profit dividend structure between the Seongnam Urban Development Corporation and the private developer.

Separately, the prosecution recently summoned accountant Jeong Young-hak, identified as the actual owner of Cheonhwa Dongin No. 5, which invested in 'Seongnam Utddeul,' as a reference witness for investigation.

Accountant Jeong is known to have, along with lawyer Nam Wook, the actual owner of Cheonhwa Dongin No. 4, persuaded landowners and purchased surrounding land aiming for private development at the end of 2009, when the Korea Land and Housing Corporation (LH) was promoting public development of Daejang-dong.

This content was produced with the assistance of AI translation services.