Jeong Min-yong, an Accomplice, Yet Avoided Both Arrest and Prosecution

Successful Defense from Arrest Warrant to Indictment... Impact of Confession Letter Containing Core Figure's Embezzlement Charges

Attorney Jeong Min-yong, who is involved in the preferential treatment allegations related to the Daejang-dong development, is attending the warrant hearing held at the Seoul Central District Court in Seocho-gu, Seoul on the 3rd. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Bae Kyunghwan] Attorney Jeong Min-yong (former head of the investment business division in the strategic business team at Seongnam Urban Development Corporation) succeeded with his written confession card. Recognized for his active cooperation with the prosecution from the early stages of the investigation, he remains the only key figure in the Daejang-dong case to have avoided both detention and indictment. Attention is focused on what role Attorney Jeong will play in future investigations into higher-ups.

According to the legal community on the 23rd, the Daejang-dong Allegations Special Investigation Team at the Seoul Central District Prosecutors' Office (led by Deputy Chief Prosecutor Kim Tae-hoon) is discussing additional summons and other schedules for supplementary investigation of Attorney Jeong. A prosecution official also explained, "The basic policy is to continue investigating allegations against individuals who have not been indicted in accordance with law and principles."

Attorney Jeong was the head of the strategic business office at Seongnam Urban Development Corporation during his tenure and led the overall practical work from drafting the public invitation guidelines for the Daejang-dong development project, selecting private business operators, to concluding business and shareholder agreements. He is a junior by one year at university to Attorney Nam Wook, one of the key figures in the Daejang-dong development allegations. After resigning from Seongnam Urban Development Corporation earlier this year, he established a real estate development company called 'Yuwon Holdings' together with former Planning Director Yoo Dong-gyu of the same corporation.

Attorney Jeong was identified as a key figure and accomplice during the investigation. He is accused of conspiring with Kim Man-bae, the major shareholder of Hwacheon Daeyu, and Attorney Nam, owner of Cheonhwa Dongin No. 4, to design the project so that Hwacheon Daeyu would receive a large sum of money, causing Seongnam Urban Development Corporation a loss of at least 65.1 billion KRW (breach of trust).

The court also acknowledged the criminal charges against Attorney Jeong. The breach of trust charges were included in the arrest warrants for Kim and Attorney Nam, and the court issued the warrants stating that "the criminal charges have been substantiated." Considering his involvement in everything from deciding the criteria for selecting private business operators to drafting the public invitation guidelines, he was closer to a key figure than just an accomplice.

However, Attorney Jeong avoided both detention and indictment by presenting a 'written confession' card. As the investigation intensified, he submitted a written confession stating that the actual owner of Cheonhwa Dongin No. 1 was former Director Yoo, and that there were multiple rumors of a 70 billion KRW agreement. Given that the confession also included details that Attorney Nam and others handed about 300 million KRW to former Director Yoo and invested tens of billions of KRW in a company jointly established by Attorney Jeong and former Director Yoo as a form of compensation, Attorney Jeong's confession served as an initial driving force for the prosecution's investigation.

Instead of being indicted, Attorney Jeong is expected to be summoned again regarding remaining higher-ups and lobbying allegations. The investigation team is currently verifying additional testimony that Attorney Jeong told associates that he "drafted the public invitation guidelines confirming the corporation's profits and went directly to report to Lee Jae-myung, then mayor of Seongnam." A lawyer with prosecution experience said, "Unlike Attorney Nam and accountant Jeong Young-hak, who handled the practical business, Kim, former Director Yoo, and Attorney Jeong were in positions to contact higher-ups. Additional investigations or securing testimonies from them will provide clues to uncovering the largest aspect of the Daejang-dong scandal?the lobbying allegations."