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Gyeonggi Governor Lee Jae-myung was the mayor of Seongnam, suspicions of preferential treatment were raised over the fact that a company with a 1% stake in the development project in Daejang-dong, Seongnam-si generated a net profit of 100 billion won last year. Governor Lee Jae-myung voluntarily held a press conference and made a head-on breakthrough.



Correspondent Lee Hyun-young.



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In 2015, three consortiums applied for the 'Daejang-dong Development' project, and the KEB Hana Bank consortium was selected.



Afterwards, Seongnam Urban Development Corporation established a special purpose corporation called 'Seongnam Garden,' in which 50% of the shares plus one share, and the private consortium had 50% minus one share, and it began to be implemented in earnest.



However, 1% of the stake in the developer is owned by an asset management company called 'Hwacheon Daeyu'.



Net income last year was 170 billion won, and dividends over the past two years were 90.9 billion won.



It was pointed out that "the purpose of public redemption of development profits has faded" because Seongnam Urban Development Corporation, which owns half of the 'Seongnam Garden', received a dividend of 183 billion won for three years.



The major shareholder of 'Hwacheon Daeyu' is Mr. Kim, who worked as a deputy director at a media company, and owns 100% of the shares.



In July 2014, six months before the establishment of the company, Kim wrote an article by interviewing the mayor of Seongnam at the time, Jae-myung Lee, in July 2014.



In response, Gyeonggi Governor Lee Jae-myung held an unexpected 50-minute press conference and denounced it as "false reporting."



He refuted the allegations, saying, "It is an exemplary public interest project that prevented preferential treatment from private development and returned it for the benefit of citizens."



[Lee Jae-myung/Governor of Gyeonggi: The development of Daejang-dong is the greatest achievement of the Seongnam Mayor that I am proud of even now. He recovered a whopping 550.3 billion won of development profits just by exercising the license and permission.]



Kim also said in a phone call with SBS reporter, "I have no acquaintance with this branch, but rather, Seongnam City took back a significant portion of the development profits at the time. ' he claimed.