Prosecutors wrote in the indictment that Lee Jae-myung, the head of the Democratic Party of Korea, directly approved the plan to later receive half of the stake in Daejang-dong, a private company owned by Kim Man-bae, a major shareholder of Hwacheon Daeyu.
The Seoul Central District Prosecutor's Office's Anti-Corruption Investigation Division 3 (Chief Prosecutor Kang Baek-sin), which investigates the Daejang-dong case, stated this in an indictment of five people, including Kim Man-bae, who are suspected of violating the Conflict of Interest Prevention Act, explaining the process of lobbying private businesses in Daejang-dong.
As a result of the prosecution's investigation, Kim Man-bae, Nam-wook Nam, and Jung Young-hak discussed the distribution of profits to private business owners from February to April 2015, and then set the distribution ratio in the form of 'Kim Man-bae 49%, Nam-wook 25%, and Jung Young-hak 16%'.
At this time, Mr. Kim Man-bae expressed his intention to 'give about half of his share to Mayor Lee Jae-myeong' to Yoo Dong-gyu and conveyed the plan to grant the amount.
Prosecutors said that Yoo reported the plan to CEO Lee through Jeong Jin-sang and received approval.
It has been known only as Kim Man-bae's claim that Mr. Kim promised 'half the stake' to Lee, and this is the first time that the prosecution has officially confirmed this.
Right after Lee was elected mayor of Seongnam, the prosecution said that as a result of Lee placing so-called “aide groups” such as Jeong Jin-sang, Kim Yong, and Yoo Dong-gyu in key positions inside and outside the city and empowering them, a close relationship with private contractors developing in Daejang-dong was formed. I saw.
After the mayor took office in 2010, CEO Lee appointed Jeong Jin-sang as the policy secretary to directly manage pledges and policy execution, as well as receive reports on all tasks of the city and affiliated organizations.
After being nominated for the Seongnam City Council with the help of CEO Lee, Yong Kim helped the city council vote in the process of promoting various development projects.
Prosecutors saw that Lee had three people in this position and then shared information with each other to exert influence on the city administration.
In particular, Mr. Yoo, who was at the forefront of fulfilling the key pledges, was given authority beyond his status.
Comprehensive working authority to make decisions by reporting directly to CEO Lee or Jin-sang Jeong, bypassing the city department or the boss of the corporation, was given, and a few months after the appointment, Mr. Yoo was obliged to obey the duties of the chairman of the corporation The clause has been removed from the Personnel Regulations.
It is the prosecution's judgment that all these measures were taken by Lee.
Representative Lee told the Daejang-dong promotion committee members, "Yoo Dong-gyu's words are my words," and made them talk about related complaints to Mr. Yoo.
Prosecutors saw that Mr. Yoo, who had lost power, later played a role in connecting Mr. Nam and other private businessmen and CEO Lee.
Throughout the indictment, it was also described that CEO Lee directly approved the business direction desired by private contractors, such as public-private joint development or land expropriation.
In 2014, when city officials reported an operation plan to entrust the combined development work of Daejang-dong and Industrial Complex 1 to Seongnam Urban Development Corporation, CEO Lee said, "The implementer is designated as a corporation or a special purpose corporation (SPC) invested by the corporation. I wrote a separate order to entrust the work" and approved it.
Then, in order to complete the commitment to transforming Industrial Complex 1 into a park within the term of office, private contractors were ordered to proceed with the project by the acceptance method as they wished, and it was investigated that they also agreed to meet other requirements, such as increasing the floor area ratio of the apartment housing site and lowering the rental housing ratio. .
Prosecutors explained that at the project interim report meeting, they were instructed to reflect the plan to maximize the profits of private businesses.
In the indictment, the circumstances in which private contractors used the media for the Daejang-dong project were also revealed in detail.
In 2012, Mr. Nam arranged for an interview with Mr. Yoo to be published in an economic newspaper about promoting the Daejang-dong development project as a public-private partnership.
An interview with similar content was also reported on Money Today the next day with the introduction of Kim Man-bae.