Police Conduct Account Seizure and Search Over 'Daejang-dong Favoritism Allegations'... Calls for Joint Investigation Headquarters Formation

[Image source=Yonhap News]

[Asia Economy Reporter Lee Gwan-joo] The police investigating the preferential treatment allegations in the Daejang-dong development project in Seongnam, Gyeonggi Province, have begun seizing related bank accounts.

The dedicated investigation team of the Gyeonggi Southern Provincial Police Agency stated on the 5th, "We are in the process of seizing the bank accounts of individuals involved in the case." However, the specific targets of the seizure were not disclosed.

The dedicated investigation team is investigating on charges such as embezzlement and breach of trust after receiving suspicious fund flow information related to Hwacheon Daeyu Asset Management (Hwacheon Daeyu) from the Financial Intelligence Unit (FIU) of the Financial Services Commission. They have also been assigned the preferential treatment allegations in the Daejang-dong development case reported by civic groups, as well as the case involving the 5 billion KRW retirement payment received by the son of Assemblyman Kwak Sang-do from Hwacheon Daeyu.

Earlier, the investigation team imposed travel bans on nine individuals, including Kim Man-bae, the major shareholder of Hwacheon Daeyu, and Assemblyman Kwak’s son. This recent bank account seizure is also believed to be related to them. The investigation team plans to summon Lee Han-sung, CEO of Cheonhwa Dongin No. 1, an affiliate of Hwacheon Daeyu, for questioning soon.

Meanwhile, during the National Assembly audit of the National Police Agency on the same day, criticism of the police’s delayed investigation was voiced across party lines. The main point was that despite receiving information from the FIU in April, there had been little progress for five months. Police Chief Kim Chang-ryong admitted, "The initial judgment was wrong."

As both the prosecution and police are conducting investigations simultaneously, calls for the formation of a joint investigation headquarters have emerged. Chief Kim said at the audit, "It would be efficient to form a joint investigation headquarters involving the entire government, like in the Korea Land and Housing Corporation (LH) case." However, he indicated that consultation with the prosecution should come first.