Prosecutors Summon Kim Inseop, 'Baekhyeondong Lobbyist,' for Investigation... In Charge of Lobbying for Lee Jae-myung and Jeong Jin-sang

The prosecution, investigating allegations of preferential treatment and corruption in the Baekhyeon-dong development project, is currently questioning Kim In-seop, former CEO of Korea Housing Technology, on the 10th. Kim is suspected of being responsible for lobbying on behalf of Lee Jae-myung, leader of the Democratic Party of Korea, and Jeong Jin-sang, former Political Coordination Officer in the Democratic Party leader’s office, during the Baekhyeon-dong development process.

The Anti-Corruption Investigation Division 1 of the Seoul Central District Prosecutors’ Office (Chief Prosecutor Eom Hee-jun) summoned Kim as a suspect and is conducting an investigation.

Seoul Central District Prosecutors' Office, Seocho-dong, Seoul.
Photo by Choi Seok-jin

Kim is known to have served as the campaign chairman around 2006 when Lee was a candidate for mayor of Seongnam. Earlier, on the 23rd of last month, the prosecution filed a detention warrant for Kim’s associate, Kim Mo, on charges including bribery under the Act on the Aggravated Punishment of Specific Crimes. The warrant stated that Kim Mo, along with Kim In-seop, who had close ties with Lee and former officer Jeong, promised to receive 7 billion KRW from Jeong Ba-ul, CEO of Asia Developer, in exchange for facilitating permits related to the Baekhyeon-dong development project, and actually received 3.5 billion KRW.

The prosecution is also known to be questioning Kim Mo together with Kim In-seop.

The prosecution is reportedly pressing them on the nature of the money they were supposed to receive from CEO Jeong, whether the money was offered as bribes to Seongnam city officials responsible for permits, and the overall permit process.

The prosecution believes that Kim In-seop has had a close political relationship with Lee since around 2006, assisting Lee’s mayoral campaign in Seongnam, and maintained strong ties with Lee’s close aide Jeong and many Seongnam city officials through networks such as the Honam Association.

According to the prosecution’s assessment, Kim Mo, together with Kim In-seop, boasted of their close ties with then-mayor Lee Jae-myung and Jeong Jin-sang, who was effectively the second-in-command at Seongnam City Hall, to CEO Jeong Ba-ul around November 2013. They claimed they could influence Seongnam City Hall, and in return for resolving various permits related to the Baekhyeon-dong project, they promised to receive shares that would yield substantial dividends upon the project’s success.

In particular, the prosecution has identified that during the one year after Kim In-seop was detained in April 2015 for another bribery case, Kim Mo visited Kim almost daily, handled his instructions, and reported on the implementation status, effectively taking charge of Seongnam city’s liaison work.

The Baekhyeon-dong development project involved building apartments on the former Korea Food Research Institute site in Baekhyeon-dong, Bundang-gu, Seongnam City, covering 111,265 square meters. The project consists of 15 buildings with 1,233 households, with move-in starting in June 2021.

The prosecution believes that Kim In-seop and Kim Mo successfully lobbied Lee Jae-myung, then mayor of Seongnam, Jeong Jin-sang, then policy secretary, and relevant Seongnam city officials in 2015 to upgrade the land use designation from natural green area to quasi-residential area in four stages.

However, Kim Mo claims he was merely a subordinate of Kim In-seop and denies having received any portion of the 3.5 billion KRW that Kim In-seop allegedly received.

Kim Mo is also accused of perjury for testifying as a witness in the first trial of Lee Jae-myung’s Public Official Election Act violation case on February 14, 2019, at Lee’s request.

The prosecution is expected to secure Kim In-seop’s custody once the investigation is complete. An investigation into Lee Jae-myung and Jeong Jin-sang, who were identified as targets of Kim’s lobbying, is also inevitable.

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