[Asia Economy Reporter Kim Hyung-min] Lee Jae-myung, leader of the Democratic Party of Korea, will appear at the Seoul Central District Prosecutors' Office at 11 a.m. on the 10th to undergo a second investigation related to the Wirye and Daejang-dong development corruption cases. Attention is focused on whether the approach will differ from the first investigation, which was passive and replaced with written statements denying the charges. The prosecution is reportedly treating this day as the final investigation of Lee and has prepared thoroughly. After the investigation, they plan to closely review whether to request an arrest warrant over the weekend.
Lee Jae-myung, leader of the Democratic Party of Korea, is receiving a barrage of camera flashes from reporters as he takes the stage at the inauguration ceremony and policy direction discussion of the Special Committee on National Balanced Development held at the National Assembly Members' Office Building in Yeouido, Seoul on the 9th. Photo by Kim Hyun-min kimhyun81@
According to sources inside and outside the prosecution on the day, the Seoul Central District Prosecutors' Office Anti-Corruption Investigation Division 1 (Chief Prosecutor Eom Hee-jun) and Division 3 (Chief Prosecutor Kang Baek-shin) plan to question Lee mainly about his aides regarding his involvement in the Wirye New Town and Daejang-dong urban development projects.
The prosecution views Lee as the final decision-maker who tacitly approved or authorized the two projects. He was the mayor of Seongnam City, holding the authority to decide on the projects' promotion. They suspect Lee was also involved in the public-private collusion process surrounding the projects and plan to question him about this as well. A key point to confirm is whether Lee had a share in the 42.8 billion KRW dividend allocated to Cheonhadongin No. 1, an affiliate of Hwacheon Daeyu Asset Management (Hwacheon Daeyu), the private operator of Daejang-dong. A prosecution official said, "The investigation will focus on points that were not confirmed during the first investigation and suspicious parts of Lee's written statements."
In legal circles, Jeong Jin-sang, a key aide who acted as Lee's 'right-hand man' and former Political Coordination Officer at the party leader's office, is seen as the key to the second investigation. The prosecution is likely to focus on Lee's relationship with Jeong. Jeong approved various documents related to the Wirye New Town and Daejang-dong development projects and reportedly reported the contents to Lee, who was then mayor of Seongnam. The prosecution also noted in the indictment concerning the so-called 'Daejang-dong gang,' including former Seongnam Urban Development Corporation head Yoo Dong-gyu, that "Lee received reports and approved discussions on the distribution of Daejang-dong dividends in April 2015 through Jeong." Furthermore, the prosecution has conducted investigations based on the suspicion that the 27-year relationship between Lee and Jeong is a significant foundation of the allegations.
Lee notably remains silent about his relationship with Jeong, drawing attention. He did not mention Jeong at all in his written statement during the first investigation. He also did not deny the relationship as viewed by the prosecution. This contrasts with his attitude toward Yoo, the former head, and Kim Man-bae, the major shareholder of Hwacheon Daeyu, who are grouped as the 'Daejang-dong gang' or 'Daejang-dong speculation forces' and described as separate from himself. The prosecution, aiming to clarify Lee's charges, may strategically exploit this point.
Jung Jin-sang, former Chief of Political Coordination Office at the Democratic Party of Korea Representative Office [Image source=Yonhap News]
The prosecution has prepared over 200 pages of questions for Lee's second investigation. They maintain that the scope of matters to confirm is extensive, as in the first investigation. The prosecution requested Lee's side to appear at 9:30 a.m., but this was not accepted. A prosecution official also expressed hope that "substantive investigation will be conducted through Lee's active testimony." However, Lee's side intends to again substitute answers with the written statements submitted during the first investigation, making it uncertain whether an effective investigation will take place. It is also expected that Lee will refuse late-night questioning after 9 p.m. After the investigation concludes, the prosecution will decide whether to request an arrest warrant for Lee. Currently, it is likely that the prosecution will combine the Wirye and Daejang-dong development corruption cases with the Seongnam FC sponsorship fund case handled by the Suwon District Prosecutors' Office Seongnam Branch when filing the warrant.
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