[Law & Story] Daejang-dong 'That Person' Investigation Reaches Its Peak

Investigation Gains Momentum with New Team and Yoo Dong-gyu's Testimony
Identifying the Mastermind Remains Key
Opposition Attempts to Frame Probe as "Suppression"
Moral Responsibility Must Be Acknowledged, Regardless of Legal Outcome

Choi Seok-jin, legal affairs specialist reporter.

[The Asia Business Daily, Choi Seokjin, legal affairs specialist reporter] The prosecution's investigation into the Daejang-dong case is reaching its peak.

Aside from private business operators such as Kim Manbae, Nam Wook, and Jung Younghak, the investigation was almost concluded with former Seongnam Development Corporation Planning Director Yoo Donggyu taking all the blame.

Last year, the police received an early notification from the Financial Intelligence Unit (FIU) about suspicious fund flows at Hwacheon Daeyu, but only conducted a preliminary investigation for several months. The prosecution formed a dedicated investigation team and quickly brought the so-called "Daejang-dong Four" to trial, but showed no willingness to investigate the Seongnam city government or higher authorities.

Given the strong political stance and loyalty to the president and the party shown by then-Minister of Justice Park Beomgye, a former lawmaker, and the fact that the investigation team was led by a pro-government prosecutor, it may have been unrealistic to expect them to investigate Lee Jaemyung, then the leading presidential candidate of the Democratic Party, or his associates.

However, after the change of administration and the replacement of the prosecution leadership and investigation team, a de facto new investigation began, and previously hidden truths started to emerge one by one.

In particular, the investigation gained momentum after former Director Yoo, feeling a strong sense of betrayal while standing trial in detention, changed his stance.

Kim Yong, Deputy Director of the Democratic Research Institute, whom Lee publicly acknowledged as a close aide, was indicted and detained on charges of receiving hundreds of millions of won in illegal political funds from the Daejang-dong developers. Jeong Jin-sang, Chief of Political Affairs at the Democratic Party's representative office and known as Lee's "right-hand man," also had an arrest warrant requested against him for allegedly receiving over 100 million won in bribes from the same group.

In the transcript released at the early stage of the investigation, Jung Younghak recorded Kim Manbae stating that "Cheonhwa-dongin No. 1," which he claimed was owned by "that person" in Daejang-dong, was in fact a "reservoir" of profits allocated by the Daejang-dong group for former Director Yoo, Deputy Director Kim, and Chief Jeong.

Now, what remains is to determine whether Lee is indeed the "mastermind" or "that person" behind Daejang-dong.

Common sense suggests that former Director Yoo and Chief Jeong could not have disregarded the CEO and controlled Seongnam Development Corporation, granting the Daejang-dong group billions of won in development profits, without Lee's backing. However, it is not as easy as it sounds to prove Lee's involvement and hold him accountable for illegal political funds, bribery, or breach of trust.

This is because it must be proven with evidence, not just statements, that Lee either approved or at least was aware of the receipt of money or actions that caused losses to Seongnam City.

The Daejang-dong investigation is a case in which both the police and prosecution missed the critical timing under the previous administration. Many important pieces of evidence have been destroyed, and some suspects or witnesses who could have provided decisive testimony have disappeared during the investigation. Furthermore, it is highly likely that Chief Jeong and Deputy Director Kim will continue to refuse to cooperate with the prosecution's investigation.

Lee, who once loudly dismissed the case as "a novel created by the prosecution," has remained silent since the court issued a search and seizure warrant for Chief Jeong. Meanwhile, the Democratic Party has been defending Lee, with the party spokesperson even briefing the press on Chief Jeong's position.

Now that it has been revealed that Lee's two closest aides, whom he considers almost like alter egos, took hundreds of millions of won in exchange for helping the Daejang-dong group and were even promised hundreds of billions of won in dividends, two things are clear regardless of Lee's legal responsibility.

First, Lee should not remain silent but at least acknowledge his moral responsibility before the public and express regret. Second, the Democratic Party must stop obstructing the prosecution's investigation by framing it as "oppression of the opposition" without any justification.

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