Jung Young-hak and Jung Jae-chang Sue: "Extorted 12 Billion Won Under Threat to Expose Yoo Dong-gyu Lobbying"

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyung-min] Accountant Jeong Young-hak, who joined the Daejang-dong development project from its early stages and provided the prosecution with recordings of conversations with key figures, has filed a complaint with the prosecution claiming that his business partner Jeong Jae-chang threatened and blackmailed him.

According to the legal community on the 26th, Accountant Jeong recently filed a complaint with the Seoul Central District Prosecutors' Office against Jeong Jae-chang on charges of blackmail and threats.

Accountant Jeong is reported to claim that Jeong threatened to expose the fact that he gave bribes to former Seongnam Urban Development Corporation Planning Director Yoo Dong-gyu and extorted a total of 12 billion KRW from him and lawyer Nam Wook.

This content is also said to be included in the recordings submitted by Accountant Jeong to the prosecution. Specifically, when the Daejang-dong development was changed to a public-private joint development, allowing developers to earn huge dividend profits, Jeong demanded 15 billion KRW under the pretext of exposing his relationship with former Director Yoo. Accountant Jeong and lawyer Nam each gathered 6 billion KRW, totaling 12 billion KRW, and delivered it to him.

Jeong’s owned corporation, "Bomideun," also filed a civil lawsuit last July against Cheonhwa Dongin No.5, owned by Accountant Jeong, demanding payment of 3 billion KRW. This was interpreted by some as an attempt to recover the remaining amount previously demanded. This complaint case has been assigned to the dedicated investigation team probing the lobbying and preferential treatment allegations related to the Daejang-dong development.

According to the prosecution’s investigation, Accountant Jeong and Jeong Jae-chang, together with lawyer Nam Wook, delivered a total of 352 million KRW to former Director Yoo. In 2013, former Director Yoo proposed to lawyer Nam that if he helped establish the Seongnam Urban Development Corporation, he would facilitate the smooth progress of the Daejang-dong development project and later demanded money. Former Director Yoo was arrested and indicted on these charges.