Search and Seizure of Cheonhwadongin No. 6 Owner in 'Daejangdong Corruption'... 'Investigation Expands' (Comprehensive)

The prosecution is expanding its investigation to include the associates of Cheonhwa-dongin, who are considered accomplices in the Daejang-dong development corruption case.

Prosecutor's Office [Image source=Yonhap News]

The Anti-Corruption Investigation Division 3 of the Seoul Central District Prosecutors' Office (Chief Prosecutor Kang Baeksin) is conducting searches at more than 10 locations, including the residences and offices of Jo Woo-hyung, the actual owner of Cheonhwa-dongin No. 6, and attorney Jo Hyun-sung, who is listed as the nominal owner, on the 6th.

The prosecution has registered them as suspects and is investigating them on charges of violating the Conflict of Interest Prevention Act, breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes, and violation of the Act on the Regulation of Concealment of Criminal Proceeds.

The prosecution views them as accomplices in the crime of illegally profiting by using confidential information from within Seongnam City during the Daejang-dong development project and causing significant financial damage to the Seongnam Urban Development Corporation.

Cheonhwa-dongin No. 6, which was subject to the search, is an affiliate of Hwacheon Daeyu Asset Management, the developer of the Daejang-dong project, and received dividends amounting to 28.2 billion KRW through the development project.

The prosecution is reportedly securing evidence to determine whether these dividends flowed to Jo, the actual owner, or to attorney Jo Hyun-sung, the nominal owner. In particular, the prosecution considers that if Jo, who holds a 7% stake among the private investors in Daejang-dong, received dividends under attorney Jo’s name, it could be a case of money laundering.

Jo was responsible for 'fundraising' during the Daejang-dong project promotion process. He was investigated on charges of illegal mediation when the initial private developers of Daejang-dong borrowed 111.5 billion KRW in project funds from Busan Savings Bank in 2009. At that time, Jo appointed former special prosecutor Park Young-soo as his attorney through an introduction by Kim Man-bae.

Jo is also known to have attracted an investment of about 40 billion KRW from Kin & Partners, an SK affiliate, when the Daejang-dong project was underway in 2015.

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