Police Summon Civil Engineering Company CEO for Delivering 800 Million Won to Yudonggyu

One of the key figures in the 'Daejang-dong scandal,' Yoo Dong-gyu, former Planning Director of Seongnam Urban Development Corporation [Image source=Yonhap News]

[Asia Economy Reporter Kim Daehyun] The dedicated investigation team of the Gyeonggi Nambu Police Agency, which is investigating allegations of preferential treatment in the Daejang-dong development project in Seongnam-si, Gyeonggi Province, summoned and questioned the representative of a civil engineering construction company who delivered money to development project stakeholders in exchange for securing civil engineering project rights.

On the morning of the 11th, Mr. Na, the representative of the civil engineering construction company, was questioned as a witness by the dedicated investigation team. It was confirmed that Mr. Na handed over 2 billion KRW to Mr. Lee, the representative of the company in charge of sales agency for the Daejang-dong development project from 2014 to 2015, while requesting the award of civil engineering project rights.

Mr. Lee is a distant relative of former special prosecutor Park Young-soo. In January 2014, Park served as an outside director for one month at a KOSDAQ-listed company where Mr. Lee was CEO. Park’s son also worked for another company operated by Mr. Lee for three months starting November 2015.

However, Mr. Na ultimately failed to secure the civil engineering project rights and demanded Mr. Lee return the money. It is reported that Mr. Lee received 10 billion KRW from Kim Man-bae, the major shareholder of Hwacheon Daeyu Asset Management (Hwacheon Daeyu), an investor in the Daejang-dong development project, and returned the amount to Mr. Na. Recently, Mr. Na’s name appeared on the arrest warrant when former Seongnam Urban Development Corporation Planning Director Yoo Dong-gyu was detained on charges including bribery and breach of trust.

The warrant stated that former Director Yoo was accused of receiving 500 million KRW and 300 million KRW respectively from Mr. Kim and Jeong Jae-chang, a private developer of Wirye New Town, and 830 million KRW from Mr. Na.

On this day, the police reportedly questioned Mr. Na about the circumstances under which he gave money to former Director Yoo, and the specific process of exchanging money with sales agency company representative Mr. Lee. Mr. Lee was summoned for questioning on the 8th.

On the same day, Lee Han-seong, CEO of Cheonhwa Dongin No. 1, a subsidiary of Hwacheon Daeyu, and the son of independent lawmaker Kwak Sang-do, who received 5 billion KRW in severance pay from Hwacheon Daeyu, were also questioned. The police have been intensively analyzing the statements received from them during the recent Hangul Day holiday.

A police official said, "We cannot clearly disclose the specific identities of those under investigation as the investigation is ongoing," adding, "We intend to strictly investigate all individuals involved in the allegations, regardless of their status, following proper procedures."