Police Summon First President of Seongnam Development City Corporation, 'Leader of Daejang-dong' as Witness

Investigation into the Development Project Process and Yudonggyu's Role

[Image source=Yonhap News]

[Asia Economy Reporter Lee Gwan-ju] The police investigating the preferential treatment allegations in the Daejang-dong development project in Seongnam, Gyeonggi Province, summoned the first president of Seongnam Urban Development Corporation, who led the development project, for questioning.

The dedicated investigation team of the Gyeonggi Southern Provincial Police Agency summoned Hwang Mu-seong, the first president of Seongnam Urban Development Corporation, on the afternoon of the 17th as a witness. The police reportedly focused on confirming the background and process of the project's initiation, as well as the role of former Planning Headquarters Director Yoo Dong-gyu at the time.

Hwang served as the first president of Seongnam Urban Development Corporation starting January 2014 but resigned in March 2015 without completing his three-year term. Afterwards, former Director Yoo acted as the interim president for four months.

The police are currently investigating three merged cases: ▲ the Financial Intelligence Unit (FIU) notification case transferred from Yongsan Police Station in Seoul, ▲ the preferential treatment allegations in the Daejang-dong development project reported by civic groups, and ▲ the case involving the 5 billion KRW retirement payment received by the son of Assemblyman Kwak Sang-do from Hwacheon Daeyu.

Among these, the police are known to have seized and are analyzing the accounts of related parties concerning suspicious fund flows between Kim Man-bae, the major shareholder of Hwacheon Daeyu Asset Management (Hwacheon Daeyu), and former CEO Lee Seong-moon, as notified by the FIU.

However, despite the heads of both the prosecution and police expressing willingness to cooperate in the investigation through a hotline, there have been conflicts due to overlapping investigations. The prosecution requested the transfer of Assemblyman Kwak’s son’s case and executed a search warrant to seize former Director Yoo’s old mobile phone. It is reported that dissatisfaction is being expressed within the police regarding this situation.