Kim Geon-hee Special Counsel Summons Lawmaker Kim Seonkyo as Suspect in State Fund Loss Investigation

Kim: "Development charges cannot be decided solely by the county governor's orders"

People Power Party lawmaker Kim Seongyo appeared as a suspect on the 26th at the Min Joong-gi Special Investigation Team set up in the KT Building in Gwanghwamun, Seoul, regarding the allegations of preferential treatment in the development of the Yangpyeong Gongheung District involving First Lady Kim Geonhee's family, responding to questions from the press. Photo by Yonhap News Agency

The Min Joong-gi Special Investigation Team, which is investigating allegations of preferential treatment in the development of the Gongheung District in Yangpyeong, Gyeonggi Province, involving First Lady Kim Geonhee's family, summoned People Power Party lawmaker Kim Seongyo as a suspect on the 26th. This in-person questioning comes about four months after the lawmaker’s National Assembly office and residence were searched on July 25 in connection with the allegations.

Upon arriving at the special investigation team's office that morning, Assemblyman Kim stated, "There is a set procedure for the development charges in the Gongheung District, so it is not something that can be done at the discretion of the county governor," adding, "The special investigation team should not conduct a coercive investigation. I am here today to reveal the truth regarding such matters."

Kim has been under suspicion of granting preferential treatment, such as exempting development charges, to First Lady Kim Geonhee's family while serving as the Yangpyeong County Governor during their development project in the Gongheung District from 2011 to 2016.

First Lady Kim’s mother, Choi Eunsun, and her brother, Kim Jinwoo, who led the project, are under investigation on charges including loss of state funds under the Act on the Aggravated Punishment of Specific Economic Crimes, as well as embezzlement, breach of trust, and destruction of evidence in the course of business. They are accused of managing the development firm ESI&D in succession and, despite generating approximately 80 billion won in sales by building 350 apartment units in the Gongheung District between 2011 and 2016, inflating construction costs and reducing profits by fabricating false documents to minimize the development charges. Assemblyman Kim served as Yangpyeong County Governor from 2014 to 2018, a period that includes the duration of the project.

On the other hand, Assemblyman Kim argues that the allegations of preferential treatment in the Gongheung District had already been investigated by the police, who decided not to refer the case for prosecution, and claims that the special investigation team is conducting an excessive investigation.