Lee Dong-gyu of 'Daejang-dong' suspicion denies charges of evidence tampering in additional indictment

Yoo Dong-gyu, former Planning Director of Seongnam Urban Development Corporation [Image source=Yonhap News]

[Asia Economy Reporter Kim Daehyun] In the trial concerning preferential treatment and lobbying allegations in the Daejang-dong development project, former Seongnam Urban Development Corporation Planning Director Yoo Dong-gyu and others denied all charges of additional indictment.

On the 11th, the 22nd Criminal Division of the Seoul Central District Court (Presiding Judge Lee Joon-cheol) held a continuation hearing for five individuals: Yoo, Kim Man-bae, major shareholder of the private development company Hwacheon Daeyu Asset Management (Hwacheon Daeyu), lawyer Nam Wook, owner of Hwacheon Daeyu subsidiary Cheonhwa Dongin No. 4, accountant Jung Young-hak, owner of Cheonhwa Dongin No. 5, and lawyer Jung Min-yong, former head of the corporation’s strategic business team.

On this day, Yoo’s defense attorney denied the additional indictment, stating that "there was no instruction to destroy evidence, and legally, he cannot be punished." Previously, Yoo was additionally indicted on charges of instructing the destruction of evidence by ordering an acquaintance to discard a mobile phone that had been entrusted to them just before the prosecution searched his residence in September last year.

Kim also denied the charge of embezzling 10 billion KRW of company funds (embezzlement under the Specific Economic Crimes Act). It was understood that approximately 10 billion KRW out of 47.3 billion KRW, which Cheonhwa Dongin No. 1 had long-term loaned from Hwacheon Daeyu, was delivered to Lee, the representative of the Daejang-dong sales agency and a distant relative of former special prosecutor Park Young-soo. Kim’s defense attorney stated, "The money was merely loaned to Mr. Lee to ensure the project proceeded smoothly, and it cannot be considered embezzlement of Cheonhwa Dongin No. 1’s funds."

Additionally, lawyer Nam Wook denied charges of embezzling 3.8 billion KRW from Cheonhwa Dongin No. 4’s corporate funds in September 2019 to repay personal debts (embezzlement under the Specific Economic Crimes Act) and falsifying accounting records to conceal this (violation of the Act on the Regulation and Punishment of Criminal Proceeds Concealment).

The court is expected to proceed with the trial on the additional indictment cases in earnest once the trial on the core charge of breach of trust in this case is concluded. Previously, former Director Yoo was indicted for conspiring with Kim and others to cause damage to Seongnam Urban Development Corporation by allowing the private company Hwacheon Daeyu to unjustly obtain at least 65.1 billion KRW in land development dividend profits and approximately 117.6 billion KRW in implementation profits.

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