Weighing Bribery Allegations and Timing
Burden of Delays in Handling Cases Related to Lee
First Conclusion on Baekhyeondong Suspicion Soon
Kim Hyekyung's Legal Card Case Nears Final Steps
Lee Jae-myung, a member of the Democratic Party of Korea running for party leader, is attending a party meeting held at the National Assembly on the 22nd and checking his phone during the meeting. Photo by Yoon Dong-joo doso7@
[Asia Economy reporters Seongpil Jo and Sehee Jang] The police investigating the ‘Seongnam FC sponsorship fund allegations’ are reportedly considering referring Lee Jae-myung, a member of the Democratic Party of Korea, to the prosecution on charges of violating the Act on the Aggravated Punishment of Specific Crimes (bribery).
According to a comprehensive report by Asia Economy on the 28th, the Gyeonggi Southern Provincial Police Agency is weighing the timing of sending Lee to the prosecution in connection with the Seongnam FC sponsorship fund allegations. Lee has announced his candidacy for party leader, and the party convention is scheduled for the 28th of next month. It is known that the police feel a burden regarding delays in handling cases related to Lee. The Seongnam FC sponsorship fund allegations center on claims that Lee, who served as mayor of Seongnam and was the owner of Seongnam FC from 2015 to 2017, received approximately 16 billion KRW from six companies (Naver, Doosan Construction, Nonghyup, Bundang CHA Hospital, Hyundai Department Store, Alphadom City) under the name of Seongnam FC advertising fees and provided special favors in return. The core issue in the investigation is whether the sponsorship funds paid by companies facing pending matters such as construction permits to Seongnam FC, a third party, constitute bribes.
The Gyeonggi Southern Provincial Police Agency took over the investigation of the ‘Seongnam FC sponsorship fund allegations’ from the Bundang Police Station earlier this month and has been conducting the investigation. Recently, during the analysis of materials secured through a raid on Doosan Construction’s headquarters and others, it is reported that documents proving Lee’s guilt were found. The raid conducted in May was the first forced investigation targeting companies that provided sponsorship funds.
Doosan Construction is suspected of providing 4.2 billion KRW in sponsorship funds to Seongnam FC in 2016-2017 in exchange for obtaining a land-use change permit from Seongnam City for a site it owns in Jeongja-dong, Bundang-gu. In July 2015, Seongnam City approved the change of use for a 9,936㎡ hospital site owned by Doosan in Jeongja-dong, Bundang-gu, from medical use to commercial use. Doosan had purchased and held this site as medical land from the Korea Land Corporation in 1996. The city increased the floor area ratio from 250% to 670% through the change of use. Doosan completed the Bundang Doosan Tower on this site last year.
Previously, the Bundang Police Station concluded Lee was not guilty after a 3-year and 3-month investigation from June 2018 to September last year. They examined the flow of funds down to units of 1 million KRW through voluntarily submitted materials and account analysis but found no causal relationship indicating illicit solicitation or quid pro quo. After the prosecution requested supplementary investigation earlier this year, the police resumed the investigation and focused on the use and quid pro quo of the approximately 16 billion KRW in advertising fees, reportedly achieving these results.
The Gyeonggi Southern Provincial Police Agency is currently investigating not only the Seongnam FC sponsorship fund allegations related to Lee but also suspicions regarding ▲ preferential treatment in the Baekhyeon-dong development project, ▲ use of the Gyeonggi Housing and Urban Corporation (GH) dormitory as an election office, and ▲ preferential treatment in the Daejang-dong development project. Among these, the investigation into the Baekhyeon-dong development project preferential treatment is reportedly at an advanced stage with account and communication investigations, and a preliminary conclusion is expected soon.
The Gyeonggi Southern Provincial Police Agency is also reportedly in the final stages of investigating allegations of private use of corporate cards by Lee’s wife, Kim Hye-kyung. Witness interviews that could influence the conclusion are currently underway, with the goal of concluding by mid-next month. Additionally, the police have formed a focused review support team composed of officers holding lawyer and accountant licenses to conduct legal and accounting reviews of this case.
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