Prosecution Indicts Kim Yong for 'Illegal Presidential Election Funds' Detention... Lee Jae-myung Mentioned in Indictment "Not an Accomplice" (Comprehensive)

Seoul Central District Prosecutors' Office flag [Image source=Yonhap News]

[Asia Economy Reporter Kim Hyung-min] The prosecution indicted Kim Yong, deputy director of the Democratic Research Institute and a close aide to Lee Jae-myung, leader of the Democratic Party of Korea, on the 8th for allegedly receiving over 800 million won in illegal election funds ahead of the 20th presidential election.

The Anti-Corruption Investigation Division 3 of the Seoul Central District Prosecutors' Office (Chief Prosecutor Kang Baek-shin) arrested and indicted Deputy Director Kim on charges of violating the Political Funds Act. Co-conspirators Yoo Dong-gyu, former planning director of Seongnam Urban Development Corporation, lawyer Jeong Min-yong (former head of strategic projects at Seongnam Urban Development Corporation), and the provider, lawyer Nam Wook, were also indicted. The three were referred to trial without detention.

The prosecution did not name Lee Jae-myung or another close aide, Jeong Jin-sang, director of political coordination at the party leader’s office, as accomplices in the presidential election fund receipt in the approximately 20-page indictment. However, it explained that their names were mentioned several times in the sections detailing the charges against Deputy Director Kim and others.

Deputy Director Kim is accused of conspiring with former director Yoo and lawyer Jeong from April to August last year, around the time of the Democratic Party’s preliminary presidential primary, to receive 847 million won in four installments from lawyer Nam under the pretext of presidential election funds. As the general deputy director of Lee’s campaign, he was responsible for fundraising and organizational management for the presidential election. The prosecution believes that in February last year, he requested about 2 billion won from former director Yoo for presidential election funds, saying he was "circulating around Gwangju."

Former director Yoo relayed this request to lawyer Nam, who arranged the funds and passed them through lawyer Jeong and former director Yoo to Deputy Director Kim. Specifically, the prosecution explained that Deputy Director Kim received 100 million won in April last year at the office of Yuwon Holdings in Seongnam, Gyeonggi Province; 300 million won in early June inside a car parked near Forena Gwanggyo in Suwon; and 200 million won later that month inside a car near Gyeonggi Provincial Government Office in Suwon. The total amount directly delivered to Deputy Director Kim was 600 million won.

The prosecution viewed that 100 million won of the money provided by lawyer Nam for presidential election funds was used by former director Yoo. Also, it was found that 147 million won delivered by lawyer Nam in early August was not passed on by former director Yoo to Deputy Director Kim.

The prosecution believes that the collusive relationship among them was formed after Lee Jae-myung was elected mayor of Seongnam in 2010 and the Daejang-dong development project was actively promoted. Deputy Director Kim held real power over the Daejang-dong development project at the Seongnam City Council at the time, while former director Yoo held power at the Seongnam Facilities Management Corporation and Seongnam Urban Development Corporation. They allegedly granted business favors to these private operators in exchange for various entertainments, money, and election support.

The prosecution, having indicted Deputy Director Kim, plans to continue investigating the use of the money provided by lawyer Nam under the name of presidential election funds. Lee Jae-myung’s involvement is also under investigation. If job-relatedness and quid pro quo are proven during the investigation, additional charges such as bribery, third-party bribery, bribery followed by unfair business conduct, breach of trust, or embezzlement may be applied.