Prosecutors' Daejangdong Investigation... 'Mass Summons' Approaching

Focus on investigation of lobbying allegations... Summons under review for Kwak Sang-do, Choi Yoon-gil, Yoo Han-gi, Jung Jin-sang, and others

[Asia Economy Reporter Baek Kyunghwan] The investigation into the preferential treatment and lobbying allegations related to the Daejang-dong development project in Seongnam City is now down to summons and questioning. In the early stages of the case, the prosecution focused its investigative efforts on the so-called "Daejang-dong Four," including former Seongnam Urban Development Corporation (Seongnam UDC) Planning Director Yoo Dong-gyu, in connection with preferential treatment allegations. However, the investigation has now completely shifted its focus to key figures involved in the lobbying allegations.

According to the legal community on the 18th, the Seoul Central District Prosecutors' Office's special investigation team for the Daejang-dong development allegations (led by Deputy Chief Prosecutor Kim Tae-hoon) began analyzing the materials seized during the raid on former National Assembly member Kwak Sang-do's residence and the Hana Bank headquarters the previous day. A team official stated, "There is nothing to confirm yet (such as summons schedules)," but added, "If there are any shortcomings found during the analysis of the materials, (summoning related persons) will naturally follow."

The key figure in the lobbying allegations is former lawmaker Kwak. Earlier, Kwak's son, Byung-chae, who worked at Hwacheon Daeyu from 2015 until early this year, became embroiled in controversy after receiving 5 billion KRW in severance pay and consolation money for industrial accidents upon his resignation.

Having already searched Byung-chae's residence and summoned him multiple times for questioning, and with the investigation team initiating a forced investigation after Kwak's resignation, the only remaining step is effectively summoning former lawmaker Kwak himself. The investigation team suspects that Kwak may have assisted in the formation of the Hana Bank consortium, which Hwacheon Daeyu participated in. In this context, the team has also summoned Hana Bank manager Lee several times for questioning and secured Daejang-dong related materials from the Hana Bank headquarters during the recent raid.

Former Seongnam City Council Chairman Choi Yoon-gil, who is suspected of playing a leading role in establishing Seongnam UDC in 2013, is also a target for summons. The prosecution and police believe that Choi received 3 billion KRW in performance bonuses from Kim Man-bae, the major shareholder of Hwacheon Daeyu, as compensation. This is also reflected in the recorded statements submitted to the prosecution by accountant Jung Young-hak, which mention that "3 billion KRW was delivered to the Seongnam City Council Chairman." Currently, Choi is serving as the vice chairman of Hwacheon Daeyu, and the police have registered him as a suspect on charges of bribery and are investigating him.

Former Seongnam UDC Development Project Director Yoo Han-gi (currently president of Pocheon Urban Development Corporation), known to have been involved in the project from its early stages, cannot avoid forced investigation either. Although there are criticisms that the timing of the investigation into Yoo was missed, he is implicated in controversies ranging from the selection of private developers for the Daejang-dong project to the pressure for the resignation of Hwang Moo-sung, the first president of Seongnam UDC, making it impossible to avoid investigation.

The investigation team is also considering summoning former Seongnam City Policy Director Jeong Jin-sang (Deputy Secretary of the Democratic Party's election campaign office), who was involved in pressuring former president Hwang to resign, along with Yoo. The team has obtained text messages exchanged recently between Jeong and Hwang, and is expected to receive forensic data from former director Yoo Dong-gyu's mobile phone from the police. Yoo Dong-gyu spoke with Jeong Jin-sang just before the investigation team's raid on September 29.

Currently, the investigation team is probing whether the higher-ups in Seongnam City unjustly forced out former president Hwang to favor the Daejang-dong development faction. In this regard, Lee Jae-myung, the Democratic Party's presidential candidate, former director Jeong, and former director Yoo have been reported to the prosecution on charges of abuse of authority and coercion.

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