Prosecutors Arrest and Indict Lee Gang-gil for 'Sales Fraud' in Early Daejang-dong Development Involvement

Lee Kang-gil, former CEO of C7 who was involved in the initial development project of Daejang-dong, has been indicted on charges of a 2 billion KRW-scale sales fraud. It has been confirmed that this is unrelated to the Daejang-dong project.

Seoul Seocho-gu Seoul Central District Prosecutors' Office. / Photo by Jinhyung Kang aymsdream@

According to the legal community on the 9th, the Criminal Division 8 of the Seoul Central District Prosecutors' Office (Chief Prosecutor Hong Wan-hee) recently arrested and indicted Lee on charges of fraud under the Act on the Aggravated Punishment of Specific Economic Crimes.

Lee is accused of embezzling over 2 billion KRW from victims between 2019 and 2022 under the pretext of providing apartment sales rights.

The police arrested Lee on the 11th of last month and applied for an arrest warrant. The Seoul Central District Court issued the arrest warrant on the 13th, citing concerns over evidence destruction and flight risk.

Lee had promoted the private-led development of Daejang-dong together with lawyer Nam Wook and accountant Jung Young-hak, but in 2011, he transferred most of his shares and management rights to lawyer Nam and others and withdrew from the project.