Prosecutors Summarily Indict Daughter of Former Special Prosecutor Park Youngsoo Over Daejangdong Preferential Allocation... 800 Million Won Profit

Lee Sungmoon, Former CEO of Hwacheon Daeyu, and Park Charged with Housing Act Violations
Prosecution Seeks Fines of 3 Million and 5 Million Won, Respectively

The daughter of Park Youngsoo, the former special prosecutor who led the investigation into the Park Geun-hye administration's state affairs scandal, has been summarily indicted and fined over allegations of preferential allocation of an apartment in the Daejangdong development.

Former Special Prosecutor Youngsoo Park, the key suspect in the "Daejangdong 5 Billion Club" case, is attending the detention hearing held at the Seoul Central District Court in Seocho-gu, Seoul, on the 3rd. Photo by Jinhyung Kang aymsdream@

According to legal sources on the 13th, the Anti-Corruption Investigation Division 1 of the Seoul Central District Prosecutors' Office (Chief Prosecutor: Kook Won) summarily indicted Park, the daughter of the former special prosecutor, and Lee Sungmoon, former CEO of Hwacheon Daeyu Asset Management, earlier this month on charges of violating the Housing Act.

Summary indictment is a procedure in which the prosecution asks the court to impose a fine or penalty through a written review rather than a full trial, for cases where the charges are relatively minor. The prosecution reportedly requested a fine of 5 million won for the former CEO Lee and 3 million won for Park, respectively.

Former CEO Lee is accused of arbitrarily allocating apartments in Daejangdong to Park and others in June 2021, without going through an open recruitment process, even though they did not meet the residency requirements.

Park joined Hwacheon Daeyu in June 2016 through the recommendation of Kim Manbae, a private developer involved in the Daejangdong project, and worked there until September 2021. Investigations found that in June 2021, Park was allocated an 84-square-meter apartment, owned by Hwacheon Daeyu, for about half the market price, resulting in an estimated profit of about 800 million won.

Meanwhile, the prosecution cleared four Hwacheon Daeyu employees who were under investigation for allegedly concealing criminal proceeds from the Daejangdong case, citing lack of evidence.

These employees were suspected of knowingly receiving tens of millions of won as bonuses between 2019 and 2021, even though they allegedly knew the funds came from criminal proceeds obtained by Kim Manbae through Hwacheon Daeyu. However, the prosecution concluded that there was insufficient evidence to prove that the employees were clearly aware the bonuses constituted part of the criminal proceeds, and therefore closed the case without charges.

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