Lee Jae-myung Rejects Resignation Talk: "Does the President Resign Because an Employee Committed Misconduct?"

"Responsible for management but no need to apologize"

Lee Jae-myung, Governor of Gyeonggi Province. Photo by Yonhap News

[Asia Economy Reporter Kang Juhee] Lee Jae-myung, Governor of Gyeonggi Province, commented on the arrest of Yoo Dong-gyu, former head of Seongnam Urban Development Corporation and a key figure in the Daejang-dong development project controversy in Bundang-gu, Seongnam-si, Gyeonggi Province, saying, "If an employee of KEPCO (Korea Electric Power Corporation) takes bribes and commits misconduct, does the president resign?" He added that demands for his withdrawal from the presidential race are excessive.

At a press conference announcing policy pledges for the Seoul area held on the 4th at the Myeongdong Community House Masil in Jung-gu, Seoul, Lee stated, "If I were to resign over the misconduct of a subordinate, then all public officials in Korea would have to resign," asserting this point.

Regarding Yoo’s arrest, Lee said, "I deeply regret that an employee who was under my command was involved in an unfortunate incident related to the affairs I was responsible for," but added, "So far, there appears to be no corruption revealed among the Seongnam city officials under my command." He further stated, "If 20,000 to 30,000 employees directly commanded by the governor commit misconduct, saying I mismanaged and demanding I resign as a candidate is excessive."

Lee then addressed the opposition parties demanding his withdrawal, saying, "I hope they speak based on common sense and principles," and added, "If I did something wrong, I will naturally take responsibility, but (in Yoo’s case) it is about taking moral responsibility for management."

In response to the claim that Yoo was a close aide of Lee, he retorted, "If you define what a close aide is, I will check if it fits. What is the standard for a close aide? Don’t forcibly link me to this."

He explained, "It is true that Yoo helped with the election, and he had organizational management capabilities, so he joined the Facilities Management Corporation and then continued his original duties when it changed to the Urban Development Corporation. After that, he did not participate in the governor’s election, is not currently involved in the (presidential) campaign, and unilaterally resigned at the end of last year."

Yoo Dong-gyu, former head of planning at Seongnam Urban Development Corporation and a key figure in the preferential treatment allegations related to the Daejang-dong development project in Gyeonggi Province, Seongnam./Photo by Yonhap News

When asked if he had any intention to apologize regarding the Daejang-dong development special favor allegations, Lee said, "It is not that special favors were given, but that special favors were resolved," and claimed, "I sympathize with the regret, but it is not something I should apologize for; rather, it is something to be praised for."

Lee stated, "What I designed was how to reliably and stably secure the development profits for Seongnam City," adding, "I did my utmost to prevent the private sector from monopolizing the development profits, but it was insufficient. Due to institutional limitations and obstruction by the People Power Party, we could not fully recover the development profits, causing disappointment to the public. As a politician, I express my deep regret for this."

According to reports, Judge Lee Dong-hee of the Seoul Central District Court conducted a pre-arrest detention hearing on the 3rd for Yoo on charges including violation of the Act on the Aggravated Punishment of Specific Economic Crimes (breach of trust) and issued an arrest warrant citing concerns over evidence destruction and flight risk.

The prosecution alleges that Yoo gave massive special favors to Hwacheon Daeyu Asset Management (Hwacheon Daeyu), which is suspected of receiving special favors in the Daejang-dong development project, causing losses to Seongnam City, and in return, received bribes totaling around 800 million KRW.