Investigation of Development Project Processes and Related Matters
[Asia Economy Reporter Lee Gwan-joo] The police investigating the special favor allegations in the Daejang-dong development project in Seongnam, Gyeonggi Province, summoned and questioned Hwang Mu-seong, the first president of Seongnam Urban Development Corporation, which led the development project.
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 and questioned him for about four hours. 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.
When Hwang, who appeared before the police, met with reporters and was asked whether Yoo was the real power, he replied, "It is as you all know." Regarding the omission of the clause on the recovery of excess profits, one of the core suspicions, he said, "I have never heard of it during my tenure."
After the investigation, when asked about his relationship with former Director Yoo and Gyeonggi Governor Lee Jae-myung, Hwang drew a clear line, saying there was no particular relationship. However, when asked whether Yoo led the Daejang-dong development project, he said, "Yes."
Hwang served as the first president of Seongnam Urban Development Corporation from January 2014 but resigned in March 2015 without completing his three-year term. Subsequently, former Director Yoo acted as the 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 special favor allegations in the Daejang-dong development project reported by civic groups, and the case involving the 5 billion KRW retirement pay 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 Sung-moon, as notified by the FIU.
However, despite the heads of both the prosecution and police agencies expressing willingness to cooperate in the investigation by establishing a hotline, there are conflicting issues due to overlapping investigations. The prosecution demanded the transfer of Assemblyman Kwak's son's case and executed a search warrant on former Director Yoo's old mobile phone. It is reported that dissatisfaction is being expressed within the police regarding this.
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