[Asia Economy Reporter Kim Hyung-min] The Seoul Central District Prosecutors' Office, which is investigating corruption allegations related to the Wirye New Town and Daejang-dong development projects, has decided to also investigate the 'Baekhyeon-dong development preferential treatment allegations.'
According to the legal community on the 26th, the Anti-Corruption Investigation Division 1 (Chief Prosecutor Eom Hee-jun) of the Seoul Central District Prosecutors' Office recently received part of the Baekhyeon-dong case transferred from the Suwon District Prosecutors' Office Seongnam Branch.
The Baekhyeon-dong case involves allegations that the real estate development company Asia Developer received preferential treatment by having the land use designation upgraded in four stages at once (from natural green space to semi-residential). The core of the allegation is that after Mr. Kim, who served as the election campaign headquarters chief for the representative of Asia Developer during the 2006 Seongnam mayoral election, was recruited by Asia Developer in January 2015, the project rapidly progressed, and that Mr. Kim received 7 billion KRW in exchange for playing a certain role in the land use change process.
Previously, the Gyeonggi Southern Provincial Police Agency, which investigated the case, referred Kim In-seop, former CEO of Korea Housing Technology and a close aide to Lee Jae-myung, leader of the Democratic Party of Korea, to the prosecution on charges of bribery under the Act on the Aggravated Punishment of Specific Crimes. Considering the nature of the case and the expertise required for investigation, the Seongnam Branch, which received the case, transferred it to the Seoul Central District Prosecutors' Office.
The police are also investigating Lee Jae-myung, former Democratic Party Chief of Staff Jeong Jin-sang, and former Seongnam Urban Development Corporation Planning Director Yoo Dong-gyu on charges of bribery and breach of trust under the Act on the Aggravated Punishment of Specific Crimes related to the Baekhyeon-dong case. These cases are also expected to be transferred to the Seoul Central District Prosecutors' Office soon after consultations.
Lee Jae-myung was indicted in September last year on charges of making false statements related to the Baekhyeon-dong case (violation of the Public Official Election Act). In October 2021, during the National Assembly Land, Infrastructure and Transport Committee's audit of Gyeonggi Province, Lee claimed, "The Ministry of Land, Infrastructure and Transport requested the land use change, and under the Special Act on the Relocation of Public Institutions, we had no choice but to comply. The Ministry threatened to accuse us of dereliction of duty," arguing that the decision was not made voluntarily.
However, the prosecution concluded that the land use change for the Baekhyeon-dong site was decided independently by Lee as the mayor of Seongnam, not due to external pressure from the Ministry of Land, Infrastructure and Transport, and brought the case to trial.
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