Prosecutors Conduct Search and Seizure at Seongnam City Hall over 'Daejang-dong Suspicion'... Obtain Development Permit Documents (Comprehensive)

[Image source=Yonhap News]

[Asia Economy Reporter Baek Kyunghwan] The prosecution investigating the Daejang-dong development lobbying and preferential treatment allegations has conducted a search and seizure at Seongnam City Hall. Seongnam Urban Development Corporation, the key institution in this incident, was managed and supervised by Seongnam City Hall, and at the time, the mayor of Seongnam was Lee Jae-myung, the governor of Gyeonggi Province.

According to the legal community on the 15th, the dedicated investigation team of the Seoul Central District Prosecutors' Office sent prosecutors to Seongnam City Hall around 9 a.m. to secure related materials from the departments involved in the Daejang-dong development project.

Seongnam City is the institution holding various permits and approvals for the Daejang-dong project. Documents such as the 'Review Report on Investment Approval for Corporations Related to the Promotion of the Daejang-dong Development Project' prepared by the Seongnam City Administrative Planning Bureau in January 2015, and official documents personally approved by Mayor Lee at the time, remain. According to the articles of incorporation of Seongnam Urban Development Corporation, which led the Daejang-dong development project, matters concerning the acquisition and disposal of significant assets must be reported to the mayor. Seongnam Urban Development Corporation is an institution established with 100% investment from Seongnam City.

Moreover, it is known that Mayor Lee personally approved matters related to the feasibility study of the Daejang-dong project, the urban development zone designation promotion plan, and the review of the plan to recover service fees during the Daejang-dong development process. The prosecution plans to summon employees of the Administrative Planning Bureau involved in preparing these documents as witnesses for investigation.

The targets of the search and seizure are reported to include the Cultural City Project Group, which oversaw the Daejang-dong development project, and departments related to permits and approvals such as the Urban Housing Bureau, Education, Culture and Environment Bureau, and the Information and Communication Division. Among these, the Education, Culture and Environment Bureau is said to hold cultural heritage-related materials within the Daejang-dong project site, and the Information and Communication Division holds email-related materials.

This search and seizure was conducted just one day after Seoul Central District Prosecutor Lee Jung-soo stated at the National Assembly Legislation and Judiciary Committee's inspection of the Seoul Central District Prosecutors' Office that Governor Lee Jae-myung of Gyeonggi Province "is under accusation and within the scope of investigation." However, while investigations into Seongnam Urban Development Corporation, where former Planning Director Yoo Dong-gyu worked, and Hwacheon Daeyu, where Mr. Kim is a major shareholder, have progressed rapidly, investigations into Seongnam City and the Seongnam City Council, which supervised and monitored these entities, have been delayed, leading to criticism that the initial investigation was inadequate.

Until now, opposition parties have continuously argued that an investigation into Governor Lee, who appointed former Director Yoo and ultimately approved the Daejang-dong project as the mayor of Seongnam at the time, must be conducted. This is based on the judgment that if he was aware of and approved the project structure that excessively concentrated development profits to private operators, he could also be considered a 'co-principal offender of breach of trust.'

There are calls to expedite the search and seizure of the Seongnam City Council following Seongnam City Hall, as there is a possibility that money flowed to council members through related parties. A recording submitted to the prosecution by Jung, the accountant who owns Cheonhwa Dongin No. 5, an investor in the Daejang-dong development project, reportedly contains content stating that "3 billion KRW was delivered to the chairman of the Seongnam City Council and 2 billion KRW to council members."

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