Prosecutors Summon Lee Gang-gil, Former C7 CEO, for Leading Early Daejang-dong Development

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyung-min] The prosecution, investigating allegations of lobbying and preferential treatment in the Daejang-dong development, is currently summoning and questioning Lee Kang-gil, the former CEO of C7 who led the early stages of the project.

According to the legal community on the 2nd, the Anti-Corruption Investigation Division 3 of the Seoul Central District Prosecutors' Office (Chief Prosecutor Kang Baek-shin) summoned Lee in the morning as a witness.

The prosecution reportedly questioned Lee about the initial situation of the Daejang-dong development, the roles played by lawyer Nam and others, and the changes in the atmosphere after Lee Jae-myung, the mayor of Seongnam (currently a member of the Democratic Party of Korea), was elected.

Lee was involved in the project from the early discussions of the Daejang-dong development. Through C7, a real estate development company he led, he promoted a privately-led development of Daejang-dong starting in 2008. In 2009, he brought lawyer Nam Wook and accountant Jung Young-hak into the project and laid the groundwork for private development by conducting a holding company arrangement.

However, after Mayor Lee Jae-myung was elected, Seongnam City decided in March 2011 to develop the Daejang-dong area publicly and designated the site as an urban development zone. Lee, who had been leading the private development, transferred most of the shares and management rights of C7 and other participating companies to lawyer Nam and accountant Jung in July 2011 and withdrew from the project.

Lawyer Nam later was introduced to Yoo Dong-gyu, then Planning Director of the Seongnam Facilities Management Corporation, who was in charge of Daejang-dong development through Kim Man-bae, the major shareholder of Hwacheon Daeyu. It was investigated that through requests, the development method was changed to a public-private partnership.

After personnel changes reorganized the investigation team, the prosecution resumed the reinvestigation of the Daejang-dong allegations. Besides Lee, they are investigating original residents of Daejang-dong and public officials who handled the early stages of the project to reexamine the initial phase of the development. The day before, they also secured a large number of voice recordings from the Woo-gye Lee clan, original residents of Daejang-dong, in which former Director Yoo and others mentioned Mayor Lee Jae-myung while persuading the original residents.

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