Namwook's Return to Korea and Yudonggyu's Indictment... A Turning Point in the Daejangdong Investigation

Reporters are bustling at the Seoul Central District Prosecutors' Office in Seocho-gu, Seoul, on the 1st, where prosecutors arrested Yoo Dong-gyu, former Planning Director of Seongnam Urban Development Corporation and a key figure in the 'Daejang-dong Development Project Favoritism' suspicion, in the emergency room. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Baek Kyunghwan] The return of lawyer Nam Wook, a key figure in the Daejang-dong development lobbying and preferential treatment allegations, marks a new turning point in the prosecution's investigation. Another key figure, former Seongnam Urban Development Corporation Planning Director Yoo Dong-gyu, is expected to be indicted this week, and a reissuance of an arrest warrant for Kim Man-bae, the major shareholder of Hwacheon Daeyu Asset Management (Hwacheon Daeyu), is also underway.

According to the legal community on the 17th, lawyer Nam is scheduled to return on the morning of the 18th and will be questioned regarding the preferential treatment and lobbying allegations related to the Daejang-dong development. Having already hired a major law firm to prepare for the prosecution's investigation, Nam recently stated in an interview with the media that he does not know much about the lobbying allegations but mentioned that the people who need to reveal the truth are Kim and former Director Yoo.

However, it is clear that lawyer Nam is a central figure in this incident. Nam is known to have led the Daejang-dong development along with accountant Jung Young-hak, Kim, and former Director Yoo. In particular, Nam was indicted on charges of receiving money from a real estate development company that requested help to change the project from a public development by LH (Korea Land and Housing Corporation) to a private development at the early stage of the project, but he was acquitted.

Later, in 2014, when then-Seongnam Mayor Lee Jae-myung changed the Daejang-dong development to a public-private joint development, Nam participated in the development project company together with Kim and received dividends exceeding 100 billion won through Cheonhwa-dongin No. 4, which he owned.

The legal community believes that the investigation may have limitations if based solely on accountant Jung's recorded statements. Therefore, if lawyer Nam submits evidence to prove the claims in the recordings to the prosecution, the scope of the investigation is expected to expand further.

Regarding former Director Yoo, he is expected to be indicted around the 20th, when his detention period expires. Yoo is currently facing charges of breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes and bribery under the same act. However, as the prosecution is conducting account tracking and fund flow investigations to reapply for Kim's arrest warrant after it was dismissed, the charges applied to Yoo upon indictment may be partially changed or added.

Additionally, the prosecution's seizure on the 15th of an old mobile phone that former Director Yoo had hidden at an acquaintance A's house is also expected to have an impact.

Meanwhile, the prosecution has recently moved to freeze former Director Yoo's concealed assets. They have requested a pre-indictment seizure preservation order from the court targeting an officetel in Suwon, Gyeonggi Province, suspected to have been contracted under a borrowed name by Yoo. This officetel was contracted last year by acquaintance A, and the prosecution believes Yoo used A's name to sign the contract, taking such measures to recover criminal proceeds.