'Profit Distribution Designer' Jeong Young-hak, Released Recording Amid Concerns of Being Framed as 'Main Culprit'

Prosecutor-Police Investigation Speed Causes 'Daejangdong Team' to Effectively Split... Evidence of Bribery in Recorded Conversations

[Asia Economy Reporter Bae Kyunghwan] Attention is focused on the background behind accountant Jeong Young-hak, who was identified as the designer of the profit distribution for the Daejang-dong development project in Seongnam-si, Gyeonggi Province, releasing the audio recordings to prove it. Accountant Jeong is also the owner of Cheonhwa Dongin No. 5, having invested 55.82 million KRW and pocketed 64.4 billion KRW. Some interpret this as a preemptive move to avoid being framed as the main culprit amid the key figures of Hwacheon Daeyu, the asset management company, disappearing one after another or outright denying the allegations.

According to the legal community on the 30th, the prosecution is currently analyzing 19 audio files provided by accountant Jeong, who appeared as a witness on the 27th. The prosecution's simultaneous raids the previous day were also to confirm evidence of bribery involving Hwacheon Daeyu and major shareholders of Cheonhwa Dongin, who received dividend profits worth around 400 billion KRW from the recordings. In particular, the recordings are said to contain conversations over the past two years between key figures of Hwacheon Daeyu and Cheonhwa Dongin and former Seongnam Urban Development Corporation Planning Director Yoo Dong-gyu, who led the Daejang-dong development.

Although the prosecution's investigation has gained momentum, divisions have begun within the so-called ‘Daejang-dong team,’ including figures from Cheonhwa Dongin No. 1 to No. 7 and former Director Yoo. Above all, accountant Jeong is reported to have been concerned about being labeled as the ‘designer of Daejang-dong profits’ and being framed as the main culprit.

In fact, accountant Jeong has long worked as a specialist accountant in redevelopment and reconstruction projects. Since the 1990s, he has established a reputation in accounting and tax affairs for real estate development projects, particularly demonstrating his abilities in complex development project implementation methods such as joint landowner projects and cooperative methods rather than simple sales projects.

The suspicion that accountant Jeong was responsible for designing the profit structure of the Daejang-dong project also stems from this background. In a 2011 interview with a real estate specialized magazine, Jeong stated, "I prefer to plan the overall structure of a project by reviewing it from multiple angles rather than simply processing routine accounting tasks based on given data."

Another key factor interpreted as influencing accountant Jeong’s decision to release the recordings is that lawyer Nam Wook, another core figure, left the country with his family. From accountant Jeong’s perspective, he had a high level of trust with lawyer Nam, who had been involved in the Daejang-dong development project since 2009, but as the project’s profits grew astronomically and the possibility of problems increased, he preemptively acted out of concern for a complex entanglement.

The impact of the recordings has led to direct investigations of Hwacheon Daeyu and Cheonhwa Dongin figures. Kim Man-bae, the major shareholder of Hwacheon Daeyu, and former Director Yoo, who have already been questioned by the police, are the top priorities for investigation. The prosecution’s raids on Kim and Yoo’s close associates the previous day were in line with this.

Although lawyer Nam left for the United States, he cannot avoid investigation. However, it remains a point of interest to whom lawyer Nam will shift responsibility during the prosecution’s investigation.

In the legal community, even though accountant Jeong has cooperated with the prosecution by submitting the recordings, it is believed he will not be completely absolved of responsibility. Lawyer Nam and accountant Jeong have been involved in the Daejang-dong development project together since 2009, managing the developer and asset management company. Moreover, accountant Jeong is also known to have been selected as a project plan evaluation committee member for the private business operator selection during the development of the Uiwang Jangan District in June 2013. This project also began as a public-private joint development using a special purpose corporation and an asset management company.