Namwook "Lee Jae-myung has shares"... Prosecution may reveal the mysterious 'Geubun' of Cheonhadongin No.1 under veil

Nam Wook, a key figure in the Daejang-dong development preferential treatment allegations, is attending the warrant hearing held at the Seoul Central District Court in Seocho-gu, Seoul on the 3rd. Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Kim Hyung-min] Attention is focused on whether the prosecution can now reveal the true owner of Cheonhadongin No. 1, an affiliate of Hwacheon Daeyu Asset Management, which has long been shrouded in mystery.

While the prosecution had been at a standstill regarding this matter during about a year of investigation into the Daejang-dong urban development project corruption case, a new phase has recently emerged. Key figures in the case, former Seongnam Urban Development Corporation Planning Director Yoo Dong-gyu and private developer lawyer Nam Wook, have come forward exposing connections to Lee Jae-myung, leader of the Democratic Party of Korea.

Lee is a prominent figure strongly suspected to be the true owner of Cheonhadongin No. 1 in the Daejang-dong case. The suspicions around Lee reignited when lawyer Nam claimed in court that he heard from Kim Man-bae that Lee’s side held shares among the common stocks of the private business operators.

According to the legal community on the 31st, lawyer Nam asserted in the first trial of the Daejang-dong case held on the 28th at the Seoul Central District Court Criminal Division 22 (Presiding Judge Lee Jun-cheol) that Lee’s side had shares in the Daejang-dong profits.

Nam directly questioned accountant Jung Young-hak, stating that in February or April 2015, "Kim Man-bae told me, ‘Take only 25% of the entire project shares and step back. He himself only has 12.5%, and the rest belongs to Mayor Lee Jae-myung’s side.’" However, accountant Jung replied, "I have no recollection of that at all."

Former Director Yoo also pointed to Lee as the ultimate person responsible for designing the Daejang-dong development process to allow private developers to gain large profits in earlier trials.

On the 24th, Yoo’s lawyer intensely questioned accountant Jung during the trial, asking, "Wasn’t the actual decision-maker for the Daejang-dong development project the then Mayor of Seongnam, Lee Jae-myung?"

The lawyer asked, "Was the decision to exclude construction companies from the Daejang-dong development project directed by Seongnam City Hall or the Mayor of Seongnam?" and "Did you hear that Mayor Lee said, ‘Just make it a park (1st Industrial Complex Neighborhood Park), and handle everything else as you see fit’?"

Accountant Jung answered, "At the time, I didn’t know, but I learned during the recent trial process. I understand it was a directive from above."

On the morning of the 24th, while the prosecution was conducting a search and seizure at the Democratic Research Institute, Lee Jae-myung, leader of the Democratic Party of Korea, was speaking to the press in front of the Democratic Party's central office in Yeouido, Seoul, when he briefly choked up and was unable to continue speaking.
[Photo by Yonhap News]

In the initial recordings submitted by accountant Jung during the prosecution’s early investigation of the Daejang-dong case, conversations suggesting Lee’s involvement also appear.

On April 17, 2013, lawyer Nam mentioned Lee while discussing land expropriation issues with accountant Jung, relaying words from former Director Yoo. Nam said Yoo told him, "(Strategically) just package it and throw it to Mayor Lee. The Mayor even drew a picture for me. This is something only you and I should know. If we have just 100 billion won, it’s solved. Then I don’t care about Daejang-dong or anything else. You handle it. Just make that happen," Nam conveyed to Jung.

On April 30 of the same year, Nam told Jung that Yoo said, "No one must know about the money received, even if the sky splits in two. (Omitted) The Daejang-dong project must succeed. You maximize your profits and discuss with the Mayor how to help his re-election, then coordinate accordingly."

On July 2, Yoo asked Nam for more money, and Nam told Jung that he replied, "Let’s take a breather. Why is the Mayor making things complicated?" Nam also said Yoo told him, "You will polish the image for us to the Mayor. I discussed everything with Jeong Jin-sang and Kim Yong," referring to Lee’s close aides Jeong Jin-sang, Chief of Political Coordination at the Democratic Party leader’s office, and Kim Yong, Deputy Director of the Democratic Research Institute (currently detained).

On July 25, Nam claimed Yoo demanded, "You handle Daejang-dong as you wish. Just make some money there," and Nam responded, "Brother, it’s 10 billion won, but I took out insurance for you to use as much as you want, so you can use some and I’ll use some later."

Then Yoo smiled broadly and said, "You arrange everything and just tell me when it’s all sold out. I will report to the Mayor," Nam told accountant Jung.

Accountant Jung Young-hak, who is on trial for lobbying and preferential treatment allegations related to the Daejang-dong development, is attending a hearing at the Seoul Central District Court in Seocho-gu, Seoul, on the morning of the 14th. Photo by Kang Jin-hyung aymsdream@

Based solely on the recordings, it is difficult to definitively conclude that Lee is involved in the case. All statements are relayed from third parties not present at the scene, and there is a possibility that Lee’s close aides colluded with these individuals to benefit themselves by using Lee’s name.

However, if further revelations from involved parties emerge during the trial, the recordings could gain credibility, drawing attention from the legal community. For now, the prosecution is expected to focus on uncovering the true owner of Cheonhadongin No. 1, whose suspicion has deepened thanks to new testimonies from former Director Yoo and lawyer Nam. Currently, investigations are underway with a focus on the possibility that Kim Man-bae was effectively a 'front man.' The prosecution is also continuously verifying the extent of involvement of Deputy Director Kim Yong in the Daejang-dong project process.

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