Prosecutors Consider Additional Summons for Daejang-dong Lobby Figures... 'The Four' Face First Trial

Possibility of Investigation for Kwak Sang-do and Park Young-soo... 'Higher-ups' Probe and 'Four Members' Trials Also Scheduled One After Another

[Asia Economy Reporter Baek Kyunghwan] The prosecution, investigating allegations of preferential treatment and lobbying in the Daejang-dong development project in Seongnam City, is considering additional summonses for those involved in the so-called '50 Billion Club.' The first trial of the key figures in this case, including former Seongnam Urban Development Corporation (Seongnam UDC) Planning Director Yoo Dong-gyu, known as the 'Daejang-dong Four,' is also set to begin, drawing renewed attention to the prosecution's investigative efforts both inside and outside the courtroom.

According to the legal community on the 6th, the Daejang-dong Allegations Task Force at the Seoul Central District Prosecutors' Office (led by Deputy Chief Prosecutor Kim Tae-hoon) is analyzing the reasons for the dismissal of the arrest warrant for former lawmaker Kwak Sang-do and is considering additional summonses.

Former lawmaker Kwak is a key investigation target in the Daejang-dong lobbying allegations. He is suspected of helping prevent Hana Bank from leaving the Hwacheon Daeyu consortium and assisting Hwacheon Daeyu in securing the Daejang-dong project rights. The investigation team believes that the 5 billion KRW (approximately 50 billion KRW) received by his son Byung-chae as severance pay from Hwacheon Daeyu was the payoff, but the court pointed out deficiencies in the investigation, stating that "there is insufficient explanation for the necessity and reasonableness of detention."

The investigation team is currently working to specify which individuals former lawmaker Kwak contacted and how he intervened to keep Hana Bank in the consortium. There is a possibility that Kwak will be summoned for questioning as early as this week, and reapplying for an arrest warrant is also considered one of the options.

Investigations into other members of the '50 Billion Club,' including former special prosecutor Park Young-soo and former Supreme Court Justice Kwon Soon-il, are also ongoing. Last week, the investigation team summoned former special prosecutor Yang Jae-sik, who previously defended lawyer Nam Wook alongside former special prosecutor Park. In 2015, lawyer Nam was indicted on charges of receiving 830 million KRW from a real estate developer in exchange for changing the Daejang-dong project from public to private development.

Efforts to verify whether higher-ups, including Seongnam City officials, were involved in the preferential treatment and lobbying allegations are also underway. Based on the investigation of Mr. Lee, former head of the Development Project Team 1 at Seongnam UDC, and Mr. Moon, former Budget and Legal Affairs Director at Seongnam City who oversaw Seongnam UDC, the team is examining whether senior officials in Seongnam City were involved in drafting the conspiracy guidelines and business agreements.

The trial of former Seongnam UDC Planning Director Yoo Dong-gyu, major shareholder of Hwacheon Daeyu Kim Man-bae, lawyer Nam, and accountant Jeong Young-hak, owner of Cheonhwa Dongin No. 5, has also begun, requiring the investigation team to maintain its efforts in court. They have been indicted on charges including breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes for designing the project structure to benefit private parties, causing the corporation a loss of at least 180 billion KRW. However, among them, only accountant Jeong, who provided recordings and other materials during the indictment of the other three last month following Yoo's indictment, was not detained.

The biggest variable in the trial is whether the court will accept accountant Jeong's recordings as evidence. The Daejang-dong investigation began based on these recordings, but some argue that if it is recognized that they were obtained illegally, they may lack evidentiary value. Moreover, all four members of the Daejang-dong group deny all related charges during the investigation, setting the stage for intense legal battles with the prosecution.

Meanwhile, it is uncertain whether the Daejang-dong Four will appear in court on this day. The pretrial preparation hearing is a procedure held before the main trial to confirm the positions of the defendants and prosecution on the charges, discuss evidence verification methods, witness selection, and future trial plans, and does not require the defendants' attendance.