'Keyman' Yuhan-gi Found Dead Ahead of April 14 Warrant Hearing... Investigation into Conspiracy for Breach of Trust Expected to Face Setbacks (Comprehensive)

'Daejang-dong Allegations' Yuhan-gi's Extreme Choice
Suspected of Receiving 200 Million Bribe from Nam-uk, etc.
Pressure on Hangang Basin Environmental Assessment
Impact on Hana Bank's Preferred Negotiator Selection
Link to Lobbying Allegations Disappears
Investigation Expected to Intensify on Private Operators
Ruling Party Embarrassed - Opposition Calls "Victims of Investigation"

[Image source=Yonhap News]

[Asia Economy Reporters Kim Hyung-min and Lee Hyun-joo] With the extreme decision made by former Seongnam Urban Development Corporation Development Project Director Yoo Han-gi on the 10th, who was regarded as the key figure in the lobbying allegations related to the Daejang-dong development project, significant setbacks are expected in the prosecution's investigation.

Former Director Yoo was suspected of receiving bribes under the pretext of lobbying and acting as a link between the project operators and the higher-ups at Seongnam Urban Development Corporation or Seongnam City. He was also seen as a breakthrough to open a path for the investigation into the conspiracy of breach of trust by the higher-ups.

Former Director Yoo was scheduled to undergo a pre-arrest detention hearing (warrant review) at the Seoul Central District Court on the 14th. The dedicated investigation team at the Seoul Central District Prosecutors' Office (led by Deputy Chief Prosecutor Kim Tae-hoon) applied for a pre-arrest warrant for Yoo the day before. The investigation team planned to secure Yoo’s custody and use him as a stepping stone to uncover various lobbying allegations surrounding the Daejang-dong project, but with Yoo’s death, a change in the investigation direction has become inevitable.

Yoo was subject to an arrest warrant request on charges of receiving a bribe of 200 million KRW from lawyer Nam Wook, owner of Cheonhwa-dongin No. 4, and accountant Jung Young-hak, owner of No. 5. It was investigated that the reason Nam and others gave the 200 million KRW was related to the environmental impact assessment by the Hangang River Basin Environmental Office. After receiving the 200 million KRW, Yoo reportedly pressured the Hangang River Basin Environmental Office, which conducted the environmental impact assessment for the Daejang-dong project, to revoke the designation of some areas as Grade 1 zones with high conservation value. Yoo was also suspected of influencing the selection of the Hana Bank consortium, in which Hwacheon Daeyu Asset Management, where Kim Man-bae is a major shareholder, participated, as the preferred negotiator for the Daejang-dong project.

Although not included in the arrest warrant charges, the prosecution was also investigating allegations that Yoo pressured Hwang Mu-seong, the first president of Seongnam Urban Development Corporation, to resign. In a recorded conversation, Yoo urged Hwang’s resignation, citing instructions from superiors such as Yoo Dong-gyu, then Planning Director of Seongnam Urban Development Corporation, and Jung Jin-sang, Policy Director. Jung was a close aide who supported Lee Jae-myung, the Democratic Party presidential candidate, during his tenure as Seongnam mayor.

[Image source=Yonhap News]

The investigation team summoned former Director Yoo for questioning on the 1st and 7th, but Yoo reportedly denied all allegations. With this unexpected development, the prosecution is expected to shift its focus and intensify investigations into the private operators of the Daejang-dong project and Seongnam city officials.

Meanwhile, on the 10th, the ruling and opposition parties showed differing reactions to the news of former Seongnam Urban Development Corporation Development Project Director Yoo Han-gi’s death.

The camp of Lee Jae-myung, the Democratic Party presidential candidate, appeared visibly unsettled by the news of Yoo’s death, as the Daejang-dong issue, which had hindered Lee since the primary elections, could resurface.

Lee stated in a press release, expressing "deep sorrow," and called for the prompt promotion of a special prosecutor to uncover the substantive truth.

The People Power Party linked the incident to Lee, who previously served as governor of Gyeonggi Province, viewing Yoo as a scapegoat victim of the investigation. On the same day, party leader Lee Jun-seok posted on his Facebook, "Isn't this what happens when only the peripheral players are targeted while the main architect, player number one, is left untouched?"