Suspicion of Favoritism in Pangyo Daejang District
People Power Party TFT Launched
On-site Investigation Underway, Special Prosecutor Discussed
Lee Jae-myung's Determination to Face Head-on
Emphasis on No Procedural Misconduct
[Asia Economy Reporter Koo Chae-eun] The People Power Party has launched a task force team (TFT) regarding Gyeonggi Province Governor Lee Jae-myung's 'Pangyo Daejang District preferential treatment suspicion' and conducted an on-site investigation on the 16th. Along with demanding his attendance at the National Assembly audit, they have begun an all-out offensive by mentioning a state audit and special investigation. The People Power Party focused on raising suspicions such as ▲hasty review ▲preferential treatment due to the project structure ▲special relationship between the actual owner and Governor Lee in the process of selecting the company called 'Hwacheon Daeyu' as the developer.
On the other hand, Governor Lee's side maintains that the fact that the private developer made 'huge capital gains' and whether there was any 'misconduct or preferential treatment' in Seongnam City Hall's company selection process should be viewed separately. Since the real estate market loosened after 2015, when the project started, Hwacheon Daeyu indeed made huge profits through a 'high risk, high return' strategy, but there was no procedural unfairness or misconduct. Governor Lee appeared at the Gyeonggi Provincial Assembly the day before and responded, "I 100% agree with the opposition party's request for investigation."
Kim Ki-hyun, the floor leader of the People Power Party, asked Governor Lee during the first TFT meeting held that day, "Whose is Hwacheon Daeyu?" He added, "(The Hwacheon Daeyu bidding process) was carried out swiftly from the moment the business plan was submitted until the announcement of the selected company. The review was completed within a day of submission, which can only be seen as a prearranged game." He also mentioned that former special prosecutor Park Young-soo served as a standing advisor and said, "Looking at the suspicions, it is a comprehensive department store of corruption, preferential treatment, privilege, and foul play." Kim Eun-hye, a People Power Party lawmaker whose constituency includes Daejang-dong (Seongnam City Bundang-gu Gap), said, "The structure was such that the private company wielded full authority, the public bore the risk, and Hwacheon Daeyu took the profits." The People Power Party plans to intensively investigate the suspicions, including an on-site investigation of Daejang-dong by the TFT, which includes Lee Heon-seung, chairman of the Land, Infrastructure and Transport Committee, in the afternoon.
Kim Ki-hyun, floor leader of the People Power Party, is delivering opening remarks at the 'Lee Jae-myung Gyeonggi Province Governor Daejang-dong Gate Truth Investigation Task Force' meeting held at the National Assembly on the 16th. Photo by Yoon Dong-joo doso7@
Governor Lee is confronting these attacks head-on, stating he will comply with any investigation. He argues that the project, originally 100% privately developed, was converted to public development to recover part of the profits, so attacking the capital gains made by the private investor and internal issues is inappropriate. Jeong Seong-ho, the head of Governor Lee's special advisory group, appeared on the radio that day and countered, "Raising suspicions solely because a private company made profits is very political." He explained, "Over the past 10 years, the prosecution, police, and opposition parties have continuously raised issues, but it has been revealed that there was no preferential treatment or misconduct in Seongnam City."
They also counterattacked by demanding an explanation regarding the son of People Power Party lawmaker Kwak Sang-do, who worked at Hwacheon Daeyu. Kwak's son reportedly joined Hwacheon Daeyu in 2015, worked for seven years in the urban development team, and resigned earlier this year. Kim Nam-guk, the chief of staff for Governor Lee's campaign, wrote on SNS that day, "It is hard to believe that someone would deliberately seek out a newly established company with no reputation, located far from home in Seongnam, and apply there." He added, "It is suspicious whether this was a bribe for employment recommendation. It is necessary to thoroughly examine whether there is any job-related connection or quid pro quo."
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