Prosecutors Energize Investigation into ‘Daejangdong Suspicion’… Former Daejangdong Development Committee Chairman Summoned for Inquiry

Reorganization Centered on Anti-Corruption Investigation Division 3... "Other Investigations Ongoing" Beyond Criminal Facts During Trial

[Asia Economy Reporter Heo Kyung-jun] The prosecution is intensifying investigations related to the ‘Daejang-dong Development Special Favoritism Allegations,’ including summoning a former chairman of the Daejang-dong Urban Development Promotion Committee for questioning.

According to the legal community on the 22nd, the Anti-Corruption Investigation Division 3 of the Seoul Central District Prosecutors' Office (Chief Prosecutor Kang Baek-shin) summoned a resident named Lee, who served as the second chairman of the Daejang-dong Urban Development Promotion Committee, for questioning as a witness on the same day.

A prosecution official stated, "Investigations into the Daejang-dong allegations have been ongoing for all aspects except for the criminal facts that have already been prosecuted and are currently undergoing trial."

The prosecution also summoned another resident named Lee, who served as the first chairman, the day before to verify the early process of promoting private development in the Daejang-dong project.

The Lee who was questioned the previous day was involved in the initial stages of the Daejang-dong project, including agreeing to receive 2 billion KRW as compensation for assisting in persuading landowners from Nam Wook, a lawyer and owner of Cheonhwa-dongin No. 4, an affiliate of Hwacheon Daeyu Asset Management (Hwacheon Daeyu), which was promoting private development in Daejang-dong in 2012 (currently incarcerated).

The prosecution reportedly investigated Lee regarding financial transactions with lawyer Nam and suspicions of involvement by Seongnam City and the Seongnam City Council.

In May, Lee, along with other original residents of Daejang-dong, filed a complaint with the prosecution against 15 individuals, including Assemblyman Lee Jae-myung, former Seongnam Urban Development Corporation President Hwang Ho-yang, and Hwacheon Daeyu major shareholder Kim Man-bae, accusing them of breach of trust under the Special Act and violations of the Urban Development Act, claiming that land was expropriated against the will of the original residents and astronomical profits were funneled to Hwacheon Daeyu.

Recently, the prosecution reorganized the Daejang-dong case under the Anti-Corruption Investigation Division 3 and is expected to expand investigations into the higher-ups of the Daejang-dong allegations and all-around lobbying suspicions.

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