Investigation of Daejang-dong Crossing the Year... Prosecutors to Accelerate Probe into 'Lobbying and Higher-Ups'?

[Asia Economy Reporter Baek Kyunghwan] The prosecution investigating the preferential treatment and lobbying allegations related to the Daejang-dong development is expected to take action on the custody of those involved in the '50 Billion Club' soon. Although the dismissal of the arrest warrant for former lawmaker Kwak Sang-do and a series of accidents involving the investigative team have caused delays, the investigation is likely to accelerate again after the new year.

According to the legal community on the 1st, the Seoul Central District Prosecutors' Office's dedicated investigation team (led by Deputy Chief Prosecutor Kim Tae-hoon) summoned Kim Jung-tae, chairman of Hana Financial Group, as a witness on the 30th of last month and is currently coordinating a schedule to resume questioning former special prosecutor Park Young-soo.

Earlier, the investigation team conducted an inquiry into Chairman Kim to verify the substance of the 5 billion won that former lawmaker Kwak's son received from Hwacheon Daeyu, which sparked the controversy surrounding the 50 Billion Club. The team believes that when the Hana Bank consortium, which Hwacheon Daeyu participated in, faced the risk of collapse, former lawmaker Kwak, at the request of Kim Man-bae, the major shareholder of Hwacheon Daeyu, exerted influence on Chairman Kim.

Some speculate that the investigation team’s supplementary investigation to process former lawmaker Kwak’s custody, whose arrest warrant was previously dismissed once, is entering its final stage. The team is expected to decide soon whether to summon former lawmaker Kwak again or to reapply for an arrest warrant.

The investigation team also decided to summon former special prosecutor Park again for questioning, but the schedule has been delayed due to Park’s personal circumstances. Park is known to have worked as an advisory lawyer receiving advisory fees after Hwacheon Daeyu was established in 2015. His daughter also worked as an employee at Hwacheon Daeyu for several years before quitting, and preferential treatment allegations arose after it was revealed that she purchased an apartment owned by the company at a price below market value.

The summons schedule for Jeong Jin-sang, deputy director of the Democratic Party’s presidential campaign committee and a key figure in the investigation of the upper echelons of Seongnam City during the Daejang-dong development, is also being coordinated. Jeong, who served as the policy director of Seongnam City, appeared under the name ‘Director Jeong’ in connection with the alleged coercion of Hwang Mu-seong, the first president of Seongnam Urban Development Corporation, to resign midway, as part of the upper-level approval line of the Daejang-dong development.