'Keyman' Yuhan-gi Found Dead Ahead of April 14 Warrant Hearing... Investigation into Embezzlement Conspiracy Expected to Face Setbacks

'Daejang-dong Scandal' Yuhan-gi's Extreme Choice
Suspected of Receiving 200 Million Bribe from Namuk, etc.
Pressure on Hangang Basin Environmental Assessment
Impact on Hana Bank's Preferred Negotiation Partner Selection
Link to Lobbying Suspicion Disappears
Investigation Expected to Intensify on Private Operators, etc.

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyung-min] With the extreme decision made on the 10th by Yuhan-gi, former head of the Development Project Headquarters at Seongnam Urban Development Corporation (currently president of Pocheon Urban Development Corporation), who was suspected of acting as a liaison between project operators and higher-ups at Seongnam Urban Development Corporation or Seongnam City by receiving bribes under the pretext of lobbying during the Daejang-dong development project, considerable setbacks are expected in the prosecution's investigation.

Former Head Yuhan-gi was scheduled to undergo a pre-trial detention hearing (warrant substantive examination) at the Seoul Central District Court on the 14th. The dedicated investigation team at the Seoul Central District Prosecutors' Office (led by Deputy Chief Prosecutor Kim Tae-hoon) applied for a pre-arrest warrant for former Head Yuhan-gi the day before. The investigation team planned to secure Yuhan-gi’s custody and use him as a stepping stone to uncover various lobbying suspicions surrounding the Daejang-dong project, but with his death, a change in the investigation direction has become inevitable.

Former Head Yuhan-gi was a key figure in clarifying the Daejang-dong lobbying suspicions, including receiving illicit funds related to the Daejang-dong development project. At the same time, he was a breakthrough to open a path for the investigation into the embezzlement conspiracy involving higher-ups.

Yuhan-gi was subject to a detention warrant request on charges of receiving a bribe of 200 million KRW from lawyer Nam Wook, owner of Cheonhwa-dongin No. 4, and accountant Jung Young-hak, owner of No. 5. The prosecution viewed that lawyer Nam and others procured funds from Mr. Lee, a relative of former special prosecutor Park Young-soo of the ‘50 Billion Club’ who purchased apartments in Daejang-dong, and that in August 2014, accountant Jung handed over the money to former Head Yuhan-gi in an underground parking lot of a hotel in Seoul.

It was investigated that the reason lawyer Nam and others gave 200 million KRW was related to the environmental impact assessment by the Hangang River Basin Environmental Office. After receiving the 200 million KRW, former Head Yuhan-gi pressured the Hangang River Basin Environmental Office, which conducted the environmental impact assessment for the Daejang-dong project, to revoke the designation of certain areas as Grade 1 zones with high conservation value. Additionally, Yuhan-gi was suspected of exerting influence so that the Hana Bank consortium, which included Hwacheon Daeyu Asset Management where Kim Man-bae is a major shareholder, was selected as the preferred negotiator for the Daejang-dong project.

Although omitted from the detention warrant charges, the prosecution was also investigating allegations that former Head Yuhan-gi urged Hwang Mu-seong, the inaugural president of Seongnam Urban Development Corporation, to resign. This allegation, which surfaced after former President Hwang released a recorded transcript, was an important clue to identifying the higher-ups in the Daejang-dong project. In the transcript, former Head Yuhan-gi stated that he pressured former President Hwang to resign under instructions from higher-ups such as Yoo Dong-gyu, then head of the Planning Headquarters at Seongnam Urban Development Corporation, and Jeong Jin-sang, policy director. Director Jeong was a close aide who supported Lee Jae-myung, the Democratic Party presidential candidate, during his tenure as mayor of Seongnam.

[Image source=Yonhap News]

The investigation team summoned former Head Yuhan-gi for questioning on the 1st and 7th but he reportedly denied all allegations. With this unexpected development, the prosecution is expected to shift focus and strengthen investigations into private operators of the Daejang-dong project and Seongnam City officials. At the same time, there is a possibility of expanding the investigation network to include Hwacheon Daeyu affiliates to clarify lobbying suspicions. On the 7th, the prosecution also summoned former Executive Director Yang, who reportedly received about 10 billion KRW in performance bonuses from Hwacheon Daeyu, as a witness for questioning.

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