Prosecutors Investigate Daejang-dong Partner's Alleged 'Lobby Exposure Threat' (Comprehensive)

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyung-min] Jeong Young-hak, an accountant who joined the Daejang-dong development project from its early stages and provided the prosecution with recordings of conversations with key figures, is suspected of being extorted and threatened by his business partner Jeong Jae-chang, prompting the prosecution to launch an investigation.

According to the legal community on the 26th, the dedicated investigation team at the Seoul Central District Prosecutors' Office (led by Deputy Chief Prosecutor Kim Tae-hoon) secured statements regarding this matter during the investigation and began verifying the facts.

Accountant Jeong is reported to claim that Jeong threatened to expose the fact that former Seongnam Urban Development Corporation Planning Director Yoo Dong-gyu received bribes, and extorted a total of 12 billion KRW from him and lawyer Nam Wook. However, no separate complaint has yet been filed concerning the extortion and threats.

This content is also said to be included in the recordings submitted by Accountant Jeong to the prosecution. Specifically, when the Daejang-dong development was changed to a public-private joint development, allowing developers to earn huge dividend profits, Jeong demanded 15 billion KRW under the pretext of exposing his relationship with former Director Yoo. Accountant Jeong and lawyer Nam each gathered 6 billion KRW, totaling 12 billion KRW, and delivered it.

Jeong’s owned corporation, “Bomeedeun,” filed a civil lawsuit last July against Cheonhwa Dongin No.5, owned by Accountant Jeong, demanding payment of 3 billion KRW in agreed money. This has been interpreted as an attempt to recover the remaining amount previously demanded. This lawsuit was assigned to the dedicated investigation team probing the Daejang-dong development lobbying and preferential treatment allegations.

According to the prosecution’s investigation, Accountant Jeong and Jeong contributed funds together with lawyer Nam, delivering a total of 352 million KRW to former Director Yoo. In 2013, former Director Yoo proposed to lawyer Nam that if he helped establish the Seongnam Urban Development Corporation, he would facilitate the smooth progress of the Daejang-dong development project and subsequently demanded money. Former Director Yoo was indicted in custody on this charge.

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