Prosecution Extends Detention of Kim Inseop, 'Baekhyeondong Lobbyist'

The detention period of Kim In-seop, former CEO of Korea Housing Technology and the key suspect in the Baekhyeon-dong development project, has been extended.

Kim In-seop, former CEO of Korea Housing Technology
[Photo by Yonhap News]

The prosecution believes that Kim, at the time, conducted 'prison lobbying' targeting Lee Jae-myung, then mayor of Seongnam and current leader of the Democratic Party of Korea, and is reportedly planning to indict him soon and expand the investigation into Lee's main charge of breach of trust.

According to the legal community on the 23rd, the Anti-Corruption Investigation Division 1 of the Seoul Central District Prosecutors' Office (Chief Prosecutor Eom Hee-jun) extended Kim's detention period until the 3rd of next month.

Kim was detained on the 14th on charges including receiving 7.7 billion KRW from Jung, chairman of the real estate development company Asia Developer, as a bribe for facilitating permits related to the Baekhyeon-dong development project from September 2015 until last month (violation of the Act on the Aggravated Punishment of Specific Crimes - bribery). Chairman Jung had signed a sales agreement with the Korea Food Research Institute in January 2014 and began the Baekhyeon-dong development project in earnest, but Seongnam City repeatedly rejected two requests to upgrade the land use designation of the second phase site (from natural green space to general residential area).

In response, Chairman Jung recruited Kim in January of the following year, and in September, Seongnam City approved a four-step land use upgrade (from natural green space to semi-residential area). The plan to supply rental housing for public interest was reduced from 100% to 10%, and the participation of Seongnam Urban Development Corporation in the project was also canceled. Approximately 300 billion KRW in profits all went to private developers.

The prosecution believes that, similar to the Daejang-dong project corruption, there was a 'public-private collusion' among then Seongnam Mayor Lee Jae-myung, policy secretary Jeong Jin-sang, and Kim, which led to the Baekhyeon-dong project proceeding in a manner favorable to private developers. They are also verifying facts based on the view that Kim continued lobbying efforts through meetings and correspondence with associates while in prison.

Recently, the prosecution secured a 'prison letter' sent by Kim to an associate during his incarceration. It is reported to contain evidence that he personally managed the progress of the Baekhyeon-dong project and communicated with Lee's side.