Prosecutors Summon Hwang Mu-seong and Jeong Min-yong for Holiday Interrogation on 'Daejang-dong Scandal'... Next Week Critical for Warrants

Seoul Central District Prosecutors' Office, Seocho-dong, Seoul. / Photo by Seokjin Choi

[Asia Economy Reporter Choi Seok-jin, Legal Affairs Specialist] The prosecution, investigating allegations of preferential treatment and lobbying in the Daejang-dong development project, intensified its investigation on the holiday of the 31st by summoning and questioning former Seongnam Urban Development Corporation President Hwang Mu-seong and lawyer Jeong Min-yong, among other related individuals.

The investigation team is expected to secure the custody of Kim Man-bae, the major shareholder of Hwacheon Daeyu, whose arrest warrant was rejected once this week, as well as lawyer Nam Wook and others.

The Seoul Central District Prosecutors' Office dedicated investigation team (led by Deputy Chief Prosecutor Kim Tae-hoon) summoned and questioned former President Hwang and lawyer Jeong, who raised allegations of resignation pressure, on this day.

Former President Hwang has claimed that he was pressured by 'higher-ups' and could not complete his term, leading to his resignation during his tenure. At that time, Yuhan-gi, former head of the corporation's development business division who urged Hwang to resign, argued that Hwang's ongoing trial on fraud charges was the reason behind his resignation.

Additionally, former President Hwang stated that the content of the public offering guidelines, which initially set the corporation's profits as 'proportional type,' was changed to 'fixed type' without his approval.

Lawyer Jeong was the head of the strategic investment team at the corporation during the Daejang-dong project and was the key figure in drafting the public offering guidelines.

Upon appearing before the prosecution, former President Hwang rebutted, saying, "(The fact that I was tried for fraud) was something even my wife did not know," dismissing former Head Yuhan-gi's explanation as false.

Meanwhile, the prosecution is expected to secure the custody of three individuals among the 'Daejang-dong Four' who have not been arrested yet this week: Kim, lawyer Nam, and accountant Jeong Young-hak.

Earlier, the prosecution included in the indictment against former Seongnam Urban Development Corporation Planning Director Yoo Dong-gyu the fact that he promised to receive 70 billion KRW, which is 25% of the Daejang-dong development profits, from Kim.

The prosecution believes that Kim, lawyer Nam, and accountant Jeong, along with former Director Yoo, designed the project so that private operators would receive enormous profits, causing the corporation to suffer losses worth several billion KRW.

Lawyer Nam and accountant Jeong are also accused of giving bribes amounting to 352 million KRW in 2013 to former Director Yoo, together with Jeong Jae-chang, the developer of Wirye New Town.

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