[Exclusive][Strange Daejang-dong Accounting] 10 Billion Won Received by 'Daejang-dong Sales Agency', 8 Billion Won Spent 'Whereabouts Unknown'

Former Special Prosecutor Park Young-soo's Relative 'Representative Lee'
Received 10 Billion Won from Kim Man-bae
8 Billion Won Spent on 'Other Operating Expenses'
Unclear Usage of Administrative Expenses

[Asia Economy Reporter Jang Hyowon] It has been confirmed that A Sales Agency, operated by CEO Lee, who is known to have received 10 billion KRW from Kim Man-bae, the major shareholder of Hwacheon Daeyu, used 8 billion KRW in 2019 for expenses with unclear purposes. This company received a disclaimer of opinion from the audit firm in 2019. CEO Lee is known to be a relative of former special prosecutor Park Young-soo.

[Image source=Yonhap News]

According to the credit analysis report of A Sales Agency obtained by Asia Economy on the 5th, A Sales Agency spent 9.7 billion KRW as 'non-operating expenses' in 2019. Non-operating expenses refer to costs not directly related to business operations, such as interest expenses, donations, and bad debt write-offs.

Considering that A Sales Agency recorded sales of 9.6 billion KRW in 2019, the non-operating expenses exceeded the total sales. Except for 2019, the company’s non-operating expenses did not exceed 500 million KRW during the five years from 2015 to 2020, making this an unusual expense.

In particular, 8 billion KRW of the total non-operating expenses were classified as 'other non-operating expenses.' Other non-operating expenses include miscellaneous losses and special losses, which are accounts closely scrutinized by audit firms due to their unclear usage.

In fact, A Sales Agency received a 'disclaimer of opinion' in 2019. At that time, the company did not provide the audit firm with any financial statements or income statements. This is presumed to be due to many expenditures, such as other non-operating expenses, that were difficult to explain.

Unclear expenditures were also found in selling and administrative expenses. In 2019, the company used 6.7 billion KRW for selling and administrative expenses, of which 4 billion KRW was recorded under other items with no clear usage.

Sales figures are also opaque. After the Daejang-dong development project began, A Sales Agency recorded total sales of 40.8 billion KRW between 2016 and 2018. Most of this revenue came from sales income. The company had exclusive rights to act as the sales agency for five apartment blocks directly developed by Hwacheon Daeyu in Daejang-dong.

However, from 2019 onwards, there were no sales income, but other sales of 9.6 billion KRW occurred. Sales were generated from unknown sources and most of it was consumed by unknown expenses.

Inquiries about these expenditures were made to A Sales Agency, but no response was given.

Previously, CEO Lee was reported to have received 10 billion KRW from Kim Man-bae, the major shareholder of Hwacheon Daeyu. Prosecutors are investigating the possibility that part of this money was used as lobbying funds. CEO Lee is known to be a relative of former special prosecutor Park Young-soo. Lee previously served as the CEO of KOSDAQ-listed company G, where Park served as an outside director. It is also known that Park’s daughter purchased an apartment owned by Hwacheon Daeyu at half the market price.

This content was produced with the assistance of AI translation services.