'Excess Profit Recovery Claim' Seongnam Urban Development Corporation Staff "Felt Unfairly Reprimanded by Yudonggyu"

Yoo Dong-gyu, former Planning Director of Seongnam Urban Development Corporation [Image source=Yonhap News]

[Asia Economy Reporter Kim Daehyun] In the trial concerning preferential treatment and lobbying allegations in the Daejang-dong development project, Mr. Joo, who was the team leader of the Development Project Headquarters at Seongnam Urban Development Corporation (Seongnam UDC), testified that he felt "unfairly treated" despite "just doing what needed to be done" after being severely reprimanded by former Seongnam UDC Planning Headquarters Director Yoo Dong-gyu. He was the person who proposed measures to recover excess profits from private business operators.

On the 23rd, the 22nd Criminal Division of the Seoul Central District Court (Presiding Judge Lee Joon-cheol) held a continuation trial for five individuals: Mr. Yoo, Mr. Kim Man-bae, the major shareholder of Hwacheon Daeyu Asset Management (Hwacheon Daeyu), Mr. Nam Wook, lawyer and owner of Cheonhwa-dongin No. 4, a subsidiary of Hwacheon Daeyu, Mr. Jung Young-hak, accountant and owner of Cheonhwa-dongin No. 5, and Mr. Jung Min-yong, lawyer and former strategic business team leader at Seongnam UDC.

On that day, Mr. Joo said, "I spoke from the standpoint of doing what needed to be done regarding the recovery of excess profits," and added, "I believed I was doing something entirely just and reasonable." He also said, "So I felt somewhat unfairly treated." It was reported that the day after sending documents containing such opinions to lawyer Jung, Mr. Joo was reprimanded by former Director Yoo, who asked, "Are you colluding with the company?"

When asked by Mr. Kim's legal team, "Do you remember how you responded to former Director Yoo's reprimand?", he replied, "I think I did not respond separately." When asked what he thought was the reason for former Director Yoo's suspicion, Mr. Joo explained, "Because it was done too quickly, because it was sent too fast, I thought it was understandable to be suspicious."

Previously, former Director Yoo was indicted on charges of conspiring with Mr. Kim and others to cause damage to Seongnam UDC by allowing the private company Hwacheon Daeyu to unjustly obtain at least 65.1 billion KRW in land development dividend profits and approximately 117.6 billion KRW in implementation profits.