[Exclusive] Like a Code Name "Going Up to the 2nd Floor"... Jeong Jin-sang Received Direct Report Related to Seongnam FC

On September 16, the Seongnam FC clubhouse in Seongnam-si, Gyeonggi-do, where the prosecution is conducting a search related to the 'Seongnam FC sponsorship fund suspicion.' [Image source=Yonhap News]

[Asia Economy Reporter Kim Hyung-min] Testimonies are emerging that Jeong Jin-sang, the Political Coordination Officer of the Democratic Party of Korea’s Representative Office, was the ‘de facto owner’ of Seongnam FC during his tenure as the Policy Director of Seongnam City.

On the 28th, based on our investigation and explanations from internal sources, Jeong received direct reports on Seongnam FC-related matters while serving as Seongnam City’s Policy Director in 2014. Employees bypassed Gwak Seon-woo, the former Seongnam FC representative who was the practical head of the club at the time, and reported directly to Jeong when there were important issues. These employees were reportedly assigned to the club by Seongnam City through personnel measures. When going to report, they reportedly said to each other "going up to the 2nd floor" as if calling out a ‘code name.’ This reporting system is said to have been further strengthened in August 2014, after then-Mayor Lee Jae-myung of Seongnam City won re-election.

An insider familiar with the situation said, "Such reporting was an abnormal system that made it difficult to even audit the club." Typically, citizen clubs undergo comprehensive audits by the city hall overseeing their home region around August or September. Seongnam FC, which was re-established as a citizen club in 2014, was supposed to be audited by Seongnam City Hall, but since practical decisions were effectively made by senior officials at Seongnam City Hall, the audit could not be conducted fairly.

There are also testimonies that Jeong was able to secure sponsorship funds worth several hundred million won because he controlled the club’s operations. In particular, some dismiss the explanation by former Seongnam FC representative Lee Seok-hoon, who said, "Seongnam FC employees worked hard to attract advertisements, and those were advertising fees, not sponsorship funds," as nonsense. Some internal sources said, "Judging by common sense, it is difficult for club employees to secure advertising fees amounting to hundreds of millions won by selling to companies." They claim that it was possible to receive sponsorships worth hundreds of millions from large corporations because Jeong and Seongnam City directly intervened.

The prosecution is reportedly weighing summoning Jeong while strengthening charges based on these details. Earlier, former representative Gwak appeared before the Criminal Division 3 of the Suwon District Prosecutors’ Office Seongnam Branch (Chief Prosecutor Yoo Min-jong) on the 26th of last month and reportedly testified to most of these details. Based on this, the investigation team indicted former Seongnam City Strategic Promotion Team leader A and former Doosan Construction representative B without detention on charges of bribery amounting to 5.5 billion won in the name of Seongnam FC advertising sponsorship funds in exchange for convenience such as land use changes (bribery under the Act on the Aggravated Punishment of Specific Crimes). The indictment also stated that then-Mayor Lee Jae-myung and Policy Director Jeong Jin-sang conspired at the time.

Jeong is also under investigation by the Seoul Central District Prosecutors’ Office. The suspicion arises from the testimony of Yoo Dong-gyu, former Planning Director of Seongnam Urban Development Corporation, a key figure in the ‘Daejang-dong scandal.’ Yoo reportedly testified to the prosecution that he gave Jeong tens of millions of won in 2020. The prosecution is examining the possibility that Yoo provided bribes through Jeong, who was then the Gyeonggi Province Policy Director, seeking business favors, considering that lawyer Nam Wook was preparing to participate in the Yangjeong Station area development project in Namyangju, Gyeonggi Province at that time. They have also secured testimonies that Jeong and Deputy Director Kim have continuously received alcohol entertainment from the Daejang-dong group since 2013 and received expensive gifts every holiday, and are reviewing whether these constitute crimes.

However, Jeong’s side has stated to the media that the contents of the prosecution’s indictment are not true and has expressed their intention to confidently respond to any further summons by the prosecution. Additionally, Jeong’s side has denied the bribery allegations, calling them "fiction not worth considering."