Arrest Warrant Issued for Private Contractor Jeong Ba-ul in Baekhyeon-dong for Embezzlement and Breach of Trust of 48 Billion Won

Jung Ba-ul, chairman of Asia Developer and a private contractor involved in the Baekhyeon-dong development project, who is accused of embezzling and breaching trust of approximately 48 billion KRW related to the 'Baekhyeon-dong development project preferential treatment suspicion,' was detained on the 9th.

Chairman Jeong Ba-ul, a private developer involved in the Baekhyeon-dong development project accused of embezzlement and breach of trust amounting to hundreds of billions of won, is heading to the Seoul Central District Court on the morning of the 9th for a pre-arrest detention hearing. [Image source=Yonhap News]

Yoo Chang-hoon, the presiding judge in charge of warrants at the Seoul Central District Court, held a pre-arrest interrogation (warrant substantive examination) for Chairman Jung on the same day and issued an arrest warrant, citing concerns over potential evidence destruction.

Chairman Jung is accused of embezzling and breaching trust of about 48 billion KRW by inflating construction and service fees through Seongnam R&D PFV, the project operator of Baekhyeon-dong, and companies he effectively owns, including Asia Developer and Younglim General Construction, from 2013 until March of this year. He is also charged with accepting a 200 million KRW bribe from the head of a landscaping company as a kickback for issuing service orders (bribery related to breach of trust).

Asia Developer holds a 46% stake in Seongnam R&D PFV, making it the largest shareholder. It has been investigated that Seongnam R&D PFV earned approximately 300 billion KRW in sales profits from the Baekhyeon-dong project, while Asia Developer gained about 70 billion KRW in dividend profits.

With the prosecution securing Chairman Jung's custody, efforts to trace the flow of funds from the Baekhyeon-dong development profits are expected to intensify. Regarding suspicions surrounding the approval process by Seongnam City, summons and investigations of key suspects, including Jung Jin-sang, former chief of political coordination at the Democratic Party representative office, are also anticipated to proceed in earnest.