Namuk "'Lee Jae-myung Faction' Discusses Confirming Shares with Jeong Jin-sang and Kim Yong"

On the 21st, 'Early Morning Release' Followed by Appearance at Daejang-dong Trial
Following Yoo Dong-gyu, 'Joining the Exposure Battle'

Former Seongnam Urban Development Corporation Director Yoo Dong-gyu (left) and lawyer Nam Wook are attending the first trial continuation hearing related to the Daejang-dong development allegations at the Seoul Central District Court in Seocho-gu, Seoul, on the morning of the 21st. [Image source=Yonhap News]

[Asia Economy Reporter Kim Daehyun] Nam Wook, a key figure in the 'Daejang-dong development scandal,' revealed on the 21st during the Daejang-dong trial that the actual owner of Cheonhwa-dongin No. 1, a subsidiary of Hwacheon Daeyu Asset Management (Hwacheon Daeyu), was the 'Lee Jae-myung mayor's office,' disclosing the scale and transmission route of election funds.

Nam, who was released early in the morning due to the expiration of his detention period, attended the continuation of the Daejang-dong trial held under the Criminal Division 22 (Presiding Judge Lee Joon-cheol). During the witness examination, when asked by the prosecutor, "How much did you receive from Mr. Lee (the Daejang-dong developer) between April and September 2014, when Representative Lee was successfully re-elected as mayor of Seongnam?" Nam replied, "I cannot confirm the exact amount, but it was about 2.25 billion KRW."

Regarding the usage, he explained, "At least 400 million KRW was delivered to Mayor Lee Jae-myung's side (currently the leader of the Democratic Party) during the election period. Two hundred million KRW was given to Yuhan-gi (former head of the Seongnam Urban Development Corporation Development Business Division), and the remaining amount, about 400 to 500 million KRW, was delivered as election funds by Kim Man-bae (major shareholder of Hwacheon Daeyu) and Yoo Dong-gyu (former head of Seongnam Urban Development Corporation). The rest was used for business expenses by me."

Nam also mentioned, "I understand that about 1.25 billion KRW of the funds received from Mr. Lee were delivered to Mr. Kim." When the prosecutor asked, "How did Mr. Kim explain the usage?" Nam answered, "Through former head Yoo, the funds were paid to the higher-ups, the 'hyungs' (Jung Jin-sang, chief political coordinator of the Democratic Party leader's office, and Kim Yong, deputy director of the Democratic Research Institute), used as election funds, some were used by themselves as election funds, and funds were used by former Seongnam city council member Kang Han-gu and former Seongnam city council chairman Choi Yoon-gil for 'Lee Jae-myung's re-election,' and funds were also paid to religious organizations to be used for voting."

Nam testified, "Mr. Kim said that 37.4% of the shares of Cheonhwa-dongin No. 1 belong to Mayor Lee's side." When asked about the reason why Nam's share decreased from 35% to 25%, he said, "Around February 2015, at a bar, Mr. Kim, former head Yoo, accountant Jung Young-hak, and I gathered. At that time, Mr. Kim said, '(Nam Wook) You are fixed at 25% and do not get involved,' and we had a big fight, but I had no choice but to accept it." He added, "During the investigation, I learned that before the four of us met to agree on the shares, three of them agreed excluding me."

Nam elaborated, "Mr. Kim said, 'My share is only 12.5%. Actually, out of 49%, the remaining 37.4% belongs to Mayor Lee's side. It is not mine. Even if you take 25%, among private developers, your share is the largest. The roles and merits were decided to that extent, so accept it.' I resisted but ultimately accepted it."

When the prosecutor asked specifically who the 'Mayor Lee side' shares belonged to, Nam emphasized, "I did not mention names at that time. Last year, during a conversation confirming that 24.5% was definitely Mayor Lee's side's share, Jung Jin-sang and Kim Yong explicitly mentioned the names."

Nam was released from Seoul Detention Center at 0:05 a.m. due to the expiration of his detention period. He was reserved in response to questions from reporters waiting in front of the detention center, and even when attending the Daejang-dong trial that morning, he said, "I will explain the details related to the allegations in court." He has been investigated for delivering illegal political funds worth several hundred million KRW to close aides of Representative Lee. Recently, in the Daejang-dong trial, he has raised suspicions about Representative Lee's involvement in the development process.

From the morning trial, when asked by the prosecutor, "If there are parts you could not testify truthfully before, can you roughly tell us?" Nam opened up, saying, "I knew from February 2015 that the shares of Cheonhwa-dongin No. 1, a subsidiary of Hwacheon Daeyu, belonged to Mayor Lee's side through Mr. Kim."

He continued, "There are parts I could not tell truthfully during the (prosecutor's) investigation, but if the prosecutor asks, I will tell the truth to the best of my knowledge." Nam explained the reason for changing his testimony attitude, saying, "There was also a (presidential) election, and honestly, I was scared personally. I was mentally overwhelmed during the process of being arrested and investigated immediately after arriving in the country."

Regarding "how Mr. Kim got involved in the Daejang-dong project," Nam testified that "In the winter of 2011, I was introduced to Mr. Kim through reporter Bae Mo, and through him, Mayor Lee requested to give up public development and proceed with private development, so he got involved." He added, "At that time, Saenuri Party city council members outnumbered the Democratic Party, so it was difficult for Mayor Lee's side to pass the ordinance to establish Seongnam Urban Development Corporation. Mr. Kim played a role in coordinating opinions for this."

Since former head Yoo, who was released last month, remained silent about Representative Lee during his detention and trial but made explosive remarks immediately after release, attention was focused on whether Nam would also join the 'revelation battle.' Former head Yoo is reported to have given decisive testimony leading to the prosecution's arrest of Representative Lee's close aides, including Deputy Director Kim and Chief Jung, on charges of 'illegal presidential election fund receipt.'

Meanwhile, Mr. Kim, who was indicted along with Nam, is scheduled to be released on the 24th. Depending on the testimonies of these three key figures in the Daejang-dong development scandal, the speed of the prosecution's 'summons clock' for Representative Lee is expected to be determined. Kim and Nam were jointly arrested and indicted on November 22 last year. They are accused of conspiring with former head Yoo and others to funnel development profits to Hwacheon Daeyu, a private developer in Daejang-dong, causing losses to the corporation (breach of trust under the Specific Crimes Aggravated Punishment Act).