Lee Jae-myung and Democratic Party Prosecutor Investigation... Conclusion Expected Before April General Election

Suspicion of 42.8 Billion Won Profit in Daejang-dong 'Contract Allegation'
Also Targeting Allegations of North Korea Remittance and Corporate Card Misuse
Suspected Distribution of Money Envelopes in Jeon-dae, Multiple Lawmakers Expected to Be Summoned

Prosecutorial investigations targeting the Democratic Party of Korea (Deobureo Minjudang) are expected to intensify again this year. With the parliamentary elections scheduled for April, numerous Democratic Party figures anticipated to run in the general election are under scrutiny by prosecutors.

On the 2nd, legal circles both inside and outside the prosecution predicted that prosecutors will conclude several suspicious cases involving Lee Jae-myung, the Democratic Party leader, which were left unresolved last year, before the general election. If the investigation is not completed by the time the election approaches, it would be difficult for prosecutors to avoid criticism that they are attempting to influence the election. Since the investigation deadline is effectively set, the prosecutorial investigation clock is expected to tick rapidly from the beginning of the year.

Currently, the cases under investigation related to Lee or the Democratic Party include ▲ the 42.8 billion KRW contract suspicion related to the Daejang-dong development ▲ the Ssangbangwool Group’s alleged remittance to North Korea ▲ misuse of corporate credit cards during Lee’s tenure as Governor of Gyeonggi Province ▲ false reporting allegations during the presidential election ▲ and the money envelope distribution suspicion at the party convention. Prosecutors are also reviewing whether to reopen the investigation into the Ulsan mayoral election interference case involving former Presidential Chief of Staff Im Jong-seok and former Blue House Senior Secretary for Civil Affairs Cho Kuk.

The Seoul Central District Prosecutors’ Office is investigating the 42.8 billion KRW contract suspicion that Lee allegedly agreed to receive a portion of the dividends from the Daejang-dong project. Prosecutors believe Lee intended to appropriate the development profits, which were the ultimate goal of the Daejang-dong project. The core of the suspicion is that Lee agreed to receive 42.8 billion KRW worth of shares in Cheonhwa-dongin No. 1 through close aides in exchange for accommodating requests from private developers involved in the Daejang-dong project.

Previously, the court recognized in the first trial that Kim Yong, former Deputy Director of the Democratic Research Institute and a close aide to Lee, accepted money from private developers under the pretext of presidential primary campaign funds, as alleged by prosecutors. Prosecutors suspect that the funds given to Kim by private developers are part of the 42.8 billion KRW worth of shares in Cheonhwa-dongin No. 1 and are continuing their investigation.

North Korea Remittance Case and Democratic Party Convention Suspicion Also in Focus

The North Korea remittance suspicion was included in the arrest warrant request filed by prosecutors against Lee in September last year, but after the court dismissed the warrant, the case was transferred to the Suwon District Prosecutors’ Office for supplementary investigation. Additionally, the Suwon District Prosecutors’ Office is investigating allegations that Lee’s spouse, Kim Hye-kyung, misused Gyeonggi Province’s corporate credit cards for personal purposes. Prosecutors are focusing on verifying whether Lee was aware of Kim’s misuse of the corporate credit cards.

The false reporting allegations appear to be targeting the Democratic Party, but there is cautious speculation that the investigation could expand to include Lee. Prosecutors are reportedly investigating the ‘Hwacheon Daeyu Task Force’ within the Democratic Party’s presidential campaign, which was responsible for responding to the Daejang-dong suspicions, on suspicion of involvement in false reporting.

The 2021 Democratic Party convention money envelope distribution case has gained momentum as former Democratic Party leader Song Young-gil, the central figure in the allegations, was detained. Prosecutors’ investigations are now focusing on current Democratic Party lawmakers suspected of receiving money envelopes.

On the 27th of last month, prosecutors summoned Democratic Party lawmaker Heo Jong-sik for questioning as a suspect under the Political Parties Act. They have also notified Democratic Party lawmaker Im Jong-sung and Lee Seong-man, who left the party after the investigation began, to appear for questioning. Starting with these individuals, a series of summonses for current Democratic Party lawmakers suspected of receiving money envelopes is expected to follow.

Lee Jae-myung, leader of the Democratic Party of Korea. Photo by Kim Hyun-min kimhyun81@

Prosecutors Reviewing Reinvestigation of Ulsan Mayoral Election Interference Allegations

The Seoul High Prosecutors’ Office is reviewing whether to reopen the investigation into the Ulsan mayoral election interference case involving former Chief of Staff Im and former Senior Secretary Cho. Initially, prosecutors believed that the two had persuaded internal party rivals to withdraw their candidacies to ensure the election of former Ulsan Mayor Song Cheol-ho, but due to insufficient evidence, the case was dismissed in April 2021.

However, the court’s first-instance ruling on the Ulsan mayoral election interference case effectively acknowledged that the Blue House had organized interference to secure former Mayor Song’s election and sentenced all defendants affiliated with the Civil Affairs Office, explicitly mentioning the charges against former Chief of Staff Im and former Minister Cho in the judgment.

The court found that "former Blue House Anti-Corruption Secretary Park Hyung-cheol reported police investigation status reports, which were reported to the Anti-Corruption Office, to Blue House Civil Affairs Secretary Baek Won-woo and Senior Secretary Cho Kuk." Regarding the ‘bribery of competing candidates’ charge, the court also recognized that "Im Dong-ho (a competitor of former Mayor Song) told then-Chief of Staff Im Jong-seok at a 2017 Democratic Party 86 Generation meeting that if he became a Democratic Party Supreme Council member, he wanted to be appointed Consul General in Osaka."

Following this ruling, the Seoul Central District Prosecutors’ Office assigned the case, which the Committee for the Protection of the Common People and Livelihood had reported against former Chief of Staff Im and former Senior Secretary Cho for violations of the Public Official Election Act and abuse of power, to the Public Investigation Division 2 (Chief Prosecutor Jeong Won-du). The division will decide whether to commence an investigation after reviewing the Seoul High Prosecutors’ Office’s decision on reinvestigation.