Seoul Central District Prosecutors' Office Begins Investigation into Lee Jae-myung's Daejang-dong Allegation Report Case

[Image source=Yonhap News]

[Asia Economy Reporter Seongpil Cho] The prosecution has launched an investigation into Gyeonggi Province Governor Lee Jae-myung regarding allegations of preferential treatment in the Daejang-dong development project in Seongnam City, Gyeonggi Province.

On the 28th, the Supreme Prosecutors' Office announced, "We have transferred the 'Daejang-dong Development Preferential Treatment Allegation' case, in which Lee and eight others were accused by the People Power Party, to the Seoul Central District Prosecutors' Office and ordered a direct investigation." It is known that the Seoul Central District Prosecutors' Office will assign the case to the Economic Crime Criminal Division (Chief Prosecutor Yoo Kyung-pil). Additionally, to clarify the allegations of preferential treatment in the Daejang-dong development, the prosecution plans to dispatch 3 to 4 prosecutors to the Economic Crime Criminal Division and expand the investigation team.

Earlier, the People Power Party visited the Supreme Prosecutors' Office in the afternoon and filed a complaint against Lee, former Seongnam Urban Development Corporation Planning Director Yoo Dong-gyu, Kim Man-bae, the major shareholder of Hwacheon Daeyu Asset Management (Hwacheon Daeyu), and investors of Cheonhwa-dongin Nos. 2 to 7, totaling nine individuals, on charges of breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes. The People Power Party claims that the Seongnam Urban Development Corporation gave preferential treatment to the consortium including Hwacheon Daeyu when selecting a private business operator for the Daejang-dong development, and funneled enormous profits to Hwacheon Daeyu and Cheonhwa-dongin, who only held a 7% stake, causing financial damage to Seongnam City and its citizens.