Guksubu Investigates Favoritism Allegations in Donghae Mangsang District Project... 'Suspicion of Involvement of Michuhol-gu Jeonse Fraud Mastermind'

The National Police Agency's Criminal Investigation Headquarters (CIH) has launched a preliminary investigation into allegations of preferential treatment in the selection of a developer for the Mangsang District project in Donghae, involving Nam Mo, the main suspect in the Incheon Michuhol-gu jeonse fraud case.

According to the police on the 1st, the CIH's Major Crime Investigation Division received and is currently analyzing all intelligence related to the 2018 preferential treatment allegations concerning the selection of the developer for the Mangsang 1 District project under the Gangwon East Coast Economic Free Zone Authority (Dongja-cheong) last month on the 28th.

[Image source=Yonhap News]

Based on the intelligence, the police will thoroughly verify whether any improper preferential treatment was provided during the developer selection process for Mangsang 1 District and then decide whether to proceed with a full investigation. If evidence of criminal conduct involving former Gangwon Governor Choi Moon-soon and others suspected of being involved in the preferential treatment allegations is confirmed during the preliminary investigation, there is a possibility that the investigation could expand to include politicians.

A CIH official stated, "At this stage, we are only reviewing intelligence related to the crime," adding, "We are examining all the various allegations raised by the media and civic groups."

Nam established Donghae ICT, a special purpose company (SPC) for apartment construction, and is suspected of receiving preferential treatment from former Governor Choi and other politicians during the process of being selected as the project implementer for the Dongja-cheong Mangsang 1 District project in 2018.

Nam’s company, with a capital of 500 million KRW and five employees, bid on the project worth 667.4 billion KRW and was selected as the developer, but failed to purchase the additional promised project site of 1.65 million square meters and did not deposit the related escrow funds.

Despite lacking the capacity to manage the project, the company was selected as the developer, raising suspicions. Previously, Gangwon Province conducted a special audit in 2021 but concluded that there were no legal issues.

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