Former Seongnam Urban Development Corporation Director Yoo Dong-gyu (left) and lawyer Nam Wook are attending the continuation of the first trial related to lobbying and preferential treatment allegations in the Daejang-dong development project at the Seoul Central District Court in Seocho-gu, Seoul, on the morning of the 21st. [Image source=Yonhap News]
[Asia Economy Reporter Kim Hyung-min] "Words are mightier than the sword."
Recently, the phrase has been frequently mentioned among legal circles as the prosecution's investigation into the Daejang-dong and Wirye New Town development project corruption cases, and further into the political funding scandal, is heavily influenced by the revelations made by key suspects. More attention is focused on what former Seongnam Urban Development Corporation Director Yoo Dong-gyu and lawyer Nam Wook will say than on where the prosecution will direct its investigative efforts. Based on Yoo's statements, the prosecution requested and obtained arrest warrants from the court for Kim Yong, Deputy Director of the Democratic Research Institute, and Jeong Jin-sang, Political Coordination Officer of the Democratic Party Representative Office. They also announced plans to investigate the veracity of key testimonies recently given by lawyer Nam in court. In a way, their words carry more influence than the core physical evidence. Why is that?
"It doesn't seem to be a lie"... The effect of a preemptive strike
Regarding the recent atmosphere, a legal insider said, "When a revelation is made, the party being exposed has no choice but to deny it by saying 'that's not true.' It becomes difficult to respond to each point individually," adding, "Then the atmosphere tends to shift to the impression that the party being exposed is lying." This is the so-called 'preemptive strike' effect.
The insider also said, "When there is a revelation, it becomes easier for the prosecution to obtain the necessary warrants." At the stage of obtaining search and seizure warrants or arrest warrants, the investigation is ongoing before indictment, and the court can consider the nature of the revelations as an important basis for deciding whether to issue the warrants. The prosecution only needs to supplement the statements with some supporting materials when requesting the warrants.
Regarding the testimonies poured out by lawyer Nam after his release due to the expiration of his detention period, the mainstream reaction in legal circles is that "it doesn't seem like he is lying." Since Nam is a lawyer by profession, he is aware that perjury in court would result in severe punishment, so it is believed he would not deliberately give false testimony. On the 21st, Nam testified in the Daejang-dong trial that he heard from Kim Man-bae that the largest share of the project profits allocated to 'Cheonhadongin No. 1' belonged to Lee Jae-myung, leader of the Democratic Party of Korea.
However, it is unclear whether this testimony will be recognized as evidence by the court. Nam's testimony is all hearsay, conveyed in indirect speech as "I heard from Kim Man-bae," so unless it is supplemented by proof that Kim actually made such statements, it is widely analyzed that it will be difficult to admit it as evidence. A lawyer in Seocho-dong said, "Unless it is acknowledged that Kim Man-bae actually said it, the court will not even examine the credibility of Nam's testimony."
Key figure in the Daejang-dong development lobbying and preferential treatment allegations, Kim Man-bae, major shareholder of Hwacheon Daeyu Asset Management (Hwacheon Daeyu) [Image source=Yonhap News]
Did the prosecution hide a hidden card or are they still searching?
The prosecution continues to face criticism that aside from the revealing statements by former Director Yoo and lawyer Nam during the investigation, no substantial physical evidence has been secured. Nevertheless, prosecution officials are showing confidence. They argue that since the court issued warrants for Deputy Director Kim and Officer Jeong, the charges have been sufficiently substantiated.
Meanwhile, there are signs that they are still trying to find physical evidence. The day before, they conducted a search and seizure at the Gyeonggi Provincial Government office where Officer Jeong worked as Policy Director of the Governor's Secretariat from 2018 to 2021. The investigation team is reported to have secured email records exchanged between Officer Jeong and staff during his tenure at the provincial office.
Some speculate that the Seoul Central District Prosecutors' Office will take over and analyze Officer Jeong's external hard drive currently held by the Suwon District Prosecutors' Office Seongnam Branch. The external hard drive is seen as the source of the prosecution's confidence. Earlier, on September 16, the Suwon District Prosecutors' Office Seongnam Branch seized the external hard drive from Officer Jeong's residence during a search related to the Seongnam FC sponsorship fund allegations. However, it is reported that the hard drive has not yet been accessed due to issues such as lack of password provision. The Central District Prosecutors' Office can only receive the hard drive if the charges under investigation by the Seongnam Branch are the same. Otherwise, they must request and obtain a separate search warrant from the court to bring the hard drive.
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