'Daejang-dong Investigation' Completely Changed by Developer's Statement Shift
Prosecutors May Use 'Arrest Warrant Request' Card if Additional Investigation Fails
[Asia Economy Reporter Heo Kyung-jun] Lee Jae-myung, leader of the Democratic Party of Korea, appeared before the prosecution and was investigated 1 year and 4 months after the Daejang-dong development scandal broke out and the prosecution began its investigation.
On the morning of the 28th, as Lee appeared before the prosecution, he said, "You will be able to fully understand how absurd the prosecution's claims are and what the objective truth is," adding, "I believe in the power of truth and reality. I will not avoid the given mission and will fight bravely against the ruthless Yoon Seok-yeol prosecutor dictatorship regime's oppression and win."
Lee Jae-myung, leader of the Democratic Party of Korea, is speaking as he appears at the Seoul Central District Prosecutors' Office in Seocho-gu, Seoul on the 28th to undergo prosecution investigation related to the Daejang-dong development preferential treatment suspicion case. Lee is accused of leaking internal secrets of Seongnam City or Seongnam Urban Development Corporation to private contractors as the final decision-maker of the Wirye and Daejang-dong development projects during his tenure as mayor of Seongnam, enabling them to gain enormous profits. Photo by Kim Hyun-min kimhyun81@
Inside and outside the legal community, after the 2021 prosecution’s ‘Daejang-dong Season 1’ investigation, which only indicted private developers involved in Daejang-dong, the investigation into Lee, the main figure of the suspicion, stalled, leading to reactions that the allegations of Lee’s involvement in the Daejang-dong-related suspicions might be mere rumors.
Even after the launch of the Yoon Seok-yeol government and a large-scale prosecution personnel reshuffle last year, the Daejang-dong-related investigation failed to gain momentum, and Lee’s involvement allegations were regarded as mere ‘rumors.’ However, the Daejang-dong scandal, which seemed to be sinking beneath the surface, entered a new phase as key figures deeply involved in the Daejang-dong development, such as lawyer Nam Wook and former Seongnam Urban Development Corporation Planning Director Yoo Dong-gyu, reversed their statements.
As lawyer Nam and former Director Yoo cooperated with the prosecution’s investigation, Lee’s closest aides, former Political Coordination Officer Jeong Jin-sang and former Deputy Director Kim Yong of the Democratic Research Institute, were investigated by the prosecution and indicted on charges of illegal presidential election funds and bribery, causing a rapid change in the situation. Through trials and media interviews, lawyer Nam and former Director Yoo claim that the Daejang-dong development project was designed in a way that allowed massive profits to flow to private developers only because Lee approved it.
Currently, unlike the ‘Daejang-dong Season 1’ investigation, the prosecution’s investigation is developing in the direction that Lee was at the pinnacle of the Daejang-dong-related suspicions. The prosecution believes that the Daejang-dong development project was carried out under Lee’s approval and instructions as the final decision-maker, making punishment inevitable.
On the other hand, Lee counters by calling it a "model public interest recovery project." He claims that he changed the Daejang-dong project to a public-private joint development method, which allowed some of the development profits to be recovered.
Additionally, the prosecution suspects that the development profits allocated to private developers flowed to Lee’s side. It is alleged that as a reward for providing preferential treatment to the development project, a portion of the private developers’ profits was shared. Kim Man-bae, the actual owner of Hwacheon Daeyu Asset Management, a private developer leading the project, mentioned in relation to Cheonhwa-dongin No. 1, an affiliate of Hwacheon Daeyu, that "it belongs to that person," implying he is not the actual owner. However, Kim remains silent about who ‘that person’ is.
The prosecution holds the position that another summons investigation of Lee is necessary to verify suspicions raised not only in the Daejang-dong but also in the Baekhyeon-dong development project process. However, Lee has stated that he will not comply with additional summons, suggesting a confrontation between the prosecution and Lee.
Lee Jae-myung, leader of the Democratic Party of Korea, who is under suspicion of breach of trust related to preferential treatment allegations in the Daejang-dong and Wirye New Town development projects, waves to supporters as he appears at the Seoul Central District Prosecutors' Office on the 28th as a suspect. Photo by Kim Hyun-min kimhyun81@
If Lee refuses additional summons, the prosecution is highly likely to request an arrest warrant for Lee along with the ‘Seongnam FC sponsorship fund suspicion’ case, for which he has already been investigated once. The plan is to request an arrest warrant first to conclude the interim investigation and continue investigating the newly raised suspicions.
However, it is expected to be difficult for the prosecution to secure Lee’s custody. As a sitting member of the National Assembly, Lee has immunity from arrest, and since the temporary National Assembly is currently in session, the court’s warrant hearing to decide on detention requires the National Assembly’s consent for arrest. Given that the Democratic Party holds a majority of the seats, the likelihood of the arrest consent bill passing is slim.
Therefore, it is anticipated that after requesting an arrest warrant, if the National Assembly rejects the arrest consent bill, the prosecution will indict Lee without detention on the Daejang-dong-related suspicions and then continue investigating the suspicions raised in the Baekhyeon-dong development project and others.
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