Final Stage of Investigation into '3 Major Allegations' during Lee Seong-nam Mayor's Term... Only '42.8 Billion Won Contract' Remains

Appearance on the 17th as a Suspect in the Baekhyeon-dong Incident

Lee Jae-myung, leader of the Democratic Party of Korea, is nearing the final stages of the prosecution's investigation into three major allegations that occurred during his tenure as mayor of Seongnam (2014?2018).

Lee Jae-myung, leader of the Democratic Party of Korea, is attending the Supreme Council meeting held at the National Assembly on the 7th. Photo by Kim Hyun-min kimhyun81@

According to the legal community on the 14th, Lee is scheduled to appear at the Seoul Central District Prosecutors' Office on the 17th to be questioned as a suspect in the 'Baekhyeon-dong development preferential treatment' case. The Anti-Corruption Investigation Division 1 (Chief Prosecutor Eom Hee-joon) of the Seoul Central District Prosecutors' Office, which is investigating the case, plans to verify the background of the preferential treatment given to the developer of the former Korea Food Research Institute site in Baekhyeon-dong, Bundang-gu, Seongnam, and whether Lee was involved in the process of excluding Seongnam Urban Development Corporation from the project. After the investigation, they are expected to decide on Lee's legal status and conclude the investigation.

The allegations Lee is being investigated for are broadly divided into two categories: those that occurred during his time as mayor of Seongnam and those during his tenure as governor of Gyeonggi Province. Related to his time as mayor, besides the Baekhyeon-dong case, there are the 'Daejang-dong and Wirye New Town development corruption' and the 'Seongnam FC illegal sponsorship' cases. The 'North Korea remittance' and 'lawyer fee payment' cases occurred while he was governor of Gyeonggi Province (2018?2021). Lee is already on trial for the Daejang-dong, Wirye New Town, and Seongnam FC cases, and if he is indicted in the Baekhyeon-dong case as well, only the conclusion regarding the Daejang-dong '42.8 billion won contract allegation' will remain among the three major Seongnam mayoral allegations.

From 'North Korea Remittance' to 'Baekhyeon-dong' Investigation... Interest in Timing of Arrest Warrant Request

While the Suwon District Prosecutors' Office's investigation into the 'Ssangbangwool North Korea remittance' allegations has stalled due to repeated disruptions in the trial of former Gyeonggi Province Peace Deputy Governor Lee Hwa-young, the Central District Prosecutors' Office has called Lee in for questioning first regarding the Baekhyeon-dong case.

Seoul Central District Prosecutors' Office, Seocho-gu, Seoul. / Photo by Jinhyung Kang aymsdream@

The Baekhyeon-dong development was a project to build apartments on the site left behind when the Korea Food Research Institute relocated to a provincial area as part of the government's public institution relocation plan during Lee's tenure as mayor of Seongnam. The prosecution suspects that Jung Ba-ul, CEO of Asia Developer, recruited Kim In-seop, former CEO of Housing Technology, as a lobbyist in 2015 when the project was underway, exerted influence on Seongnam City, and obtained preferential treatment such as upgrading the land use designation from natural green space to quasi-residential area by four levels. The prosecution believes that Lee could not have been unaware of this project at the time. Jung, Kim, and others have been indicted and detained, and key testimonies have been obtained from former officials who worked at Seongnam City, making Lee's investigation inevitable.

The legal community expects the prosecution to request an arrest warrant after completing the investigation of Lee. The issue is the timing of the warrant request. While the prevailing view is that the prosecution will combine the Baekhyeon-dong-related charges with the 'North Korea remittance' charges under investigation by the Suwon District Prosecutors' Office and request an arrest warrant simultaneously, there is also speculation that the Baekhyeon-dong case will be separated and an arrest warrant requested independently due to the prolonged trial of former Gyeonggi Province Peace Deputy Governor Lee Hwa-young. Previously, the prosecution requested arrest warrants together for the Daejang-dong and Seongnam FC cases because both occurred during Lee's tenure as mayor of Seongnam, whereas Baekhyeon-dong relates to his time as mayor and North Korea remittance to his time as governor, making the cases different in nature. Some also speculate that the prosecution will request the warrant during the regular National Assembly session in September, which requires a vote on the arrest consent motion.

After Baekhyeon-dong, Only the Daejang-dong '42.8 Billion Won Contract' Remains

Once the prosecution concludes the Baekhyeon-dong case, attention is expected to focus on uncovering the truth behind the Daejang-dong '42.8 billion won contract allegation.' This will be the last remaining allegation related to Lee's tenure as mayor of Seongnam.

The allegation is that Lee agreed to receive 42.8 billion won, representing the stake of Cheonhwa-dongin No. 1, in exchange for granting preferential treatment to the Daejang-dong group. Former head of Seongnam Urban Development Corporation Yoo Dong-gyu testified during the prosecution's investigation and trial, prompting the prosecution to verify the facts. Yoo stated that Kim Man-bae, the major shareholder of Hwacheon Daeyu Asset Management, overturned a previous promise to pay 70 billion won in late 2021 and said he would pay 42.8 billion won after deducting common expenses.

Regarding this, a prosecution official said, "We are continuing the investigation to clarify the facts of the matter."

Conflict Between Lee and Prosecution Over Trial Schedule for Daejang-dong and Wirye Cases

In the trials related to the Daejang-dong and Wirye New Town development corruption cases, Lee and the prosecution strongly clashed over the schedule.

At a preparatory hearing held on the 11th at the Seoul Central District Court Criminal Division 33 (Presiding Judge Kim Dong-hyun), when the court emphasized the principle of "twice-weekly trials" and stated, "We cannot hold trials according to the defendant (Lee Jae-myung)'s schedule," Lee's side responded, "We absolutely cannot handle trials more than once every two weeks." They added, "Lee is currently on trial for violations of the Public Official Election Act, and with upcoming prosecution investigations into the Baekhyeon-dong and Ssangbangwool allegations, as well as the possibility of an arrest warrant request, essential schedules as a lawmaker and party leader must also be considered."

The prosecution countered, "It is unacceptable to refuse by only citing the circumstances of the defense counsel and defendant," and questioned, "Many indicted politicians have participated in trials three times a week. If trials are adjusted to the defendant's personal circumstances, the trial itself could last for years, which the public would not accept."

Ultimately, the court decided to hold another preparatory hearing on the 18th to further discuss the future trial schedule. Since Lee was indicted in March, the court has only held preparatory hearings for five months.

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