[Asia Economy Reporter Seongpil Cho] The prosecution has officially launched an investigation into the allegations of 'preferential treatment in the Daejang-dong development project' that surfaced during the presidential election period. The Seoul Central District Prosecutors' Office, the largest prosecution office in the country, has begun a simultaneous investigation into former Supreme Court Justice Kwon Soon-il, who caused controversy by serving as an advisor at Hwacheon Daeyu Asset Management without registering as a lawyer, following opposition party lawmakers who raised the allegations.
Former Supreme Court Justice Kwon Soon-il Case Assigned to Economic Crime Criminal Division
On the 24th, the Supreme Prosecutors' Office announced, "The case of the accusation against former Justice Kwon for violating the Attorney-at-Law Act and other charges was transferred to the Seoul Central District Prosecutors' Office today, and we have directed them to conduct a direct investigation." The Seoul Central District Prosecutors' Office, which received the case, assigned it to the Economic Crime Criminal Division (Chief Prosecutor Yoo Kyung-pil) under the 4th Chief Prosecutor and began reviewing the accusation. The prosecution is expected to establish a detailed investigation plan as soon as the review of the accusation is completed.
It is known that former Justice Kwon served as an advisor to Hwacheon Daeyu from two months after his retirement in September last year, receiving an advisory fee of 15 million KRW per month. During this process, suspicions arose that he might have violated the Attorney-at-Law Act by advising Hwacheon Daeyu without formally registering as a lawyer. In response to the controversy, former Justice Kwon reportedly donated the entire amount of approximately 150 million KRW he received from Hwacheon Daeyu to the Korea Autism Love Association.
Previously, organizations such as the Lawyers for Human Rights and Unification of Korea filed a complaint with the Supreme Prosecutors' Office the day before, accusing former Justice Kwon of bribery after the fact, violations of the Public Officials Ethics Act, and the Attorney-at-Law Act. Regarding these allegations, former Justice Kwon stated, "A journalist I was acquainted with proposed appointing me as a company advisor, and after confirming that there were no issues with the Public Officials Ethics Act or the Kim Young-ran Act, I accepted the offer." Former Justice Kwon had previously expressed a not guilty opinion in the appeal trial of Governor Lee Jae-myung's violation of the Public Official Election Act in July last year.
Kim Ki-hyun Complaint Under Investigation by Public Investigation Division 2
The Public Investigation Division 2 (Chief Prosecutor Kim Kyung-geun) of the Seoul Central District Prosecutors' Office is investigating a case in which the Democratic Party presidential candidate Lee Jae-myung's campaign filed a complaint against People Power Party floor leader Kim Ki-hyun, lawmaker Yoon Chang-hyun, and former presidential candidate Jang Ki-pyo for violations of the Public Official Election Act and other charges. Earlier, on the 19th, Lee Jae-myung's campaign filed a complaint with the Seoul Central District Prosecutors' Office, stating, "Kim, the floor leader, and others repeatedly publicized false information related to the 'Daejang-dong development project' with the intent to prevent candidate Lee from winning."
Although the charges filed include violations of the Public Official Election Act and defamation by floor leader Kim and others, analysis inside and outside the prosecution suggests that in order to clarify these charges, the basic facts surrounding the 'Daejang-dong allegations' must first be established. Key points to be clarified include the circumstances under which the 'Seongnam Utddeul' consortium, which included the asset management company Hwacheon Daeyu, was selected as the preferred negotiator just one day after submitting the business plan, and the process of designing the profit distribution structure between Seongnam Urban Development Corporation and private businesses.
Lee Jae-myung, Currently a Complainant but...
The Daejang-dong project is a 1.5 trillion KRW public-private joint development project initiated after Governor Lee Jae-myung won re-election as mayor of Seongnam in 2014. It involves constructing 5,903 apartment units and other facilities on 278,000 pyeong (approximately 918,000 square meters) in Daejang-dong, Bundang-gu, Seongnam City. At the center of the controversy is Hwacheon Daeyu, which participated with an investment of 49.995 million KRW and received dividends of 57.7 billion KRW. The opposition party claims there are numerous suspicions regarding project selection, project structure, and profit distribution. The opposition has submitted requests for a parliamentary audit and bills to introduce a special prosecutor to the National Assembly concerning these allegations.
There is cautious speculation that Governor Lee may become a defendant. On the 22nd, floor leader Kim stated, "We plan to file a complaint against candidate Lee and others for breach of trust in office and other charges." Meanwhile, Minister of Justice Park Beom-gye announced the day before, "The Daejang-dong development allegations are matters that must be swiftly clarified," signaling a prompt investigation.
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