Kim Man-bae, the major shareholder of Hwacheodaeyu, lawyer Nam Wook, and accountant Jung Young-hak (from left).
[Asia Economy Reporter Choi Seok-jin, Legal Affairs Specialist] The trial concerning the Daejang-dong development lobbying and preferential treatment allegations officially entered full-scale courtroom battles on the 17th with the start of the first witness examination.
The prosecution summoned Jeong Jin-sang, deputy chief of the election campaign office and considered a close aide to Lee Jae-myung, the Democratic Party presidential candidate, resuming the investigation into the ‘upper echelons’ that had been halted due to extreme actions by those involved in the case.
Under the jurisdiction of the Seoul Central District Court Criminal Division 22 (Presiding Judge Yang Cheol-han), the second trial held this morning for former Seongnam Urban Development Corporation Planning Director Yoo Dong-gyu, Hwacheon Daeyu major shareholder Kim Man-bae, lawyers Nam Wook and Jeong Min-yong, and accountant Jeong Young-hak included the witness examination of Han, the Development Project Team 2 leader at Seongnam Urban Development Corporation who was in charge of the Daejang-dong development project.
Before delving into the core of the indictment, such as the establishment of breach of trust charges, the court selected Han, a practical worker, as the first witness to understand the overall structure and basic outline of the project.
On this day, the court reiterated its position that the defendants should be allowed not only to view but also to copy the audio recordings submitted as evidence. It also requested, “There are 23 witnesses requested by the prosecution and nearly 30 witnesses requested by defendant Nam Wook. While witness examinations are necessary to prove the charges in court, it is undesirable for the process to be excessively one-sided, so please consider adjustments depending on the progress.”
During the morning’s witness examination, the prosecution questioned Han about the land acquisition methods used by the urban development project implementer and the process by which ‘Seongnam’s Garden’ was selected as the project implementer for Daejang-dong. They also asked whether Han had received and reviewed the Daejang-dong development project proposal from former Director Yoo and accountant Jeong.
The court plans to hold one to two trial sessions weekly starting from this day. The defendants’ side appealed that since a PCR test certificate is required to visit defendants at Seoul Detention Center, holding two trials per week would impose restrictions on their right to defense.
The court expressed understanding of the difficult situation but stated, “For defendants who are detained, we will do our best to ensure that judgments are made within the legally prescribed detention period.” On the 21st, cross-examination of Han by the defense and witness examination of the current Seongnam Urban Development Corporation Deputy Director 2 are scheduled.
Except for accountant Jeong, who cooperated with the prosecution by providing recorded transcripts during the investigation stage, all other defendants denied the charges during the two preparatory hearings and the first trial held on the 10th.
In particular, former Director Yoo and Kim, among other defendants, challenged the credibility of the recorded transcripts submitted by accountant Jeong and applied for copies of the original audio files, obtaining the court’s approval.
Former Director Yoo, Kim, and others are accused of conspiring during the Daejang-dong project process to divert at least 65.1 billion KRW in land development dividends and at least 117.6 billion KRW in profits to Hwacheon Daeyu, causing equivalent losses to Seongnam Urban Development Corporation, under breach of trust charges pursuant to the Specific Economic Crimes Act.
However, Kim and others argue that since they followed Seongnam City’s policy direction, breach of trust cannot be established, and the profits they gained are the result of investments made while bearing high risks. Future trials are expected to feature intense courtroom battles between the prosecution and defendants over the authenticity of conversations related to former Director Yoo’s ‘70 billion KRW agreement’ and Kim’s lobbying contained in the so-called ‘Jeong Young-hak transcripts.’
Kim’s lawyer, who appeared at the trial, told the press that after the previous trial, he faced difficulties due to remarks about ‘Lee Jae-myung’s instructions,’ and that the articles were published differently from the original intent.
Meanwhile, the Seoul Central District Prosecutors’ Office dedicated investigation team (led by Deputy Chief Prosecutor Kim Tae-hoon) summoned and investigated Deputy Chief Jeong in a closed session on the afternoon of the 13th on charges including abuse of authority and breach of trust related to the Daejang-dong development project.
Deputy Chief Jeong, who served as Seongnam City Policy Director and assisted then-Mayor Lee during the Daejang-dong project, personally approved major official documents related to the development between 2013 and 2016. These included documents verifying private developers such as investment approval reviews and reports on changes to urban development project zones and implementation plans. In October last year, candidate Lee directly mentioned Deputy Chief Jeong as a close aide while denying rumors of ties to Yoo Dong-gyu.
Deputy Chief Jeong was also found to have made eight phone calls with former Director Yoo on the day and the day before the prosecution’s search and seizure of Yoo last September, revealed during forensic analysis of mobile phones.
He is also suspected of involvement in pressuring Hwang Mu-seong, the first president of Seongnam Urban Development Corporation, to resign. A recording released by former President Hwang contains circumstances where former Development Project Director Yoo Han-gi repeatedly mentioned ‘the mayor’ and ‘Director Jeong’ as superiors while urging Hwang to resign.
In this regard, a civic group that filed complaints against candidate Lee and Deputy Chief Jeong for abuse of authority and coercion submitted a re-investigation request to the Seoul Central District Prosecutors’ Office on the 14th, stating that “only about 20 days remain before the statute of limitations expires.”
According to the Criminal Procedure Act, upon receiving a re-investigation request, the head of the prosecutors’ office must immediately file charges and notify the competent high court and the applicant, or within 30 days, forward the re-investigation request along with investigation-related documents and evidence to the competent high court.
A prosecution official said, “Since the re-investigation request has been received, procedures such as forwarding records will proceed according to the law, and the investigation will continue as well.”
The prosecution did not disclose whether additional summonses would be made, but since Deputy Chief Jeong agreed to a late-night investigation and the questioning continued until dawn the next day, it appears that sufficient investigation was conducted. Some speculate that having completed a ‘face-saving investigation’ of Deputy Chief Jeong, the prosecution may soon conclude the investigation.
The prosecution had been coordinating summons schedules with Deputy Chief Jeong since last month, but he avoided summons for various reasons, and the summons investigations were continuously delayed following the extreme choice of former Director Yoo Han-gi and the death of Development Section Chief Kim Moon-gi.
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