Prosecutors Seek Arrest Warrant for Kim Inseop, 'Baekhyeondong Development Lobbyist' (Comprehensive)

The prosecution investigating allegations of preferential treatment in the Baekhyeon-dong development has moved to secure the custody of Kim In-seop, the former CEO of Korea Housing Technology, who is a key figure in the allegations.

Prosecutor's Office [Image source=Yonhap News]

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The Anti-Corruption Investigation Division 1 of the Seoul Central District Prosecutors' Office (Chief Prosecutor Eom Hee-jun) filed an arrest warrant for former CEO Kim on the 12th, who was identified as a 'government relations lobbyist' during the project process.

According to the prosecution, former CEO Kim is suspected of receiving 7.7 billion KRW and the business rights to a construction site restaurant (Hambasikdang) from Jung Ba-ul, CEO of the real estate development company Asia Developer, as a bribe for facilitating convenience related to permits and approvals for the Baekhyeon-dong development project from September 2015 until last month (charges of bribery under the Act on the Aggravated Punishment of Specific Crimes).

The Baekhyeon-dong development is a project that built apartments on the former Korea Food Research Institute site in Baekhyeon-dong, Bundang-gu, Seongnam-si, covering 111,265 square meters. It consists of 15 buildings with 1,233 households and began occupancy in June 2021.

In September 2015, Seongnam City upgraded the land use designation of the Korea Food Research Institute site, which had previously been prohibited for residential use, from natural green space to quasi-residential land by four levels. At that time, the mayor of Seongnam City was Lee Jae-myung, leader of the Democratic Party of Korea, and the land use change occurred after CEO Jung recruited former CEO Kim. The prosecution suspects that Seongnam City granted preferential treatment in the land use change due to former CEO Kim, who was close to Lee and then Policy Chief Jung Jin-sang.

The prosecution particularly believes that lobbying by former CEO Kim and others influenced the process in which the rental housing supply plan was reduced from 100% to 10%, with the remaining 90% replaced by more profitable general sale apartments. In fact, during the police investigation stage, it was revealed that former CEO Kim had a total of 115 phone calls with Jung Jin-sang from April 2014 to March 2015 while the Baekhyeon-dong development project was underway.

With the final cancellation of Seongnam Urban Development Corporation’s participation in the Baekhyeon-dong development, it is known that private developers monopolized profits of about 300 billion KRW.

Earlier, the prosecution summoned former CEO Kim on the 10th for questioning as a suspect. It is reported that during this investigation, the prosecution focused on questioning the circumstances under which CEO Jung assisted the Baekhyeon-dong project and the usage of the money received as compensation.

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