A transcript of attorney Nam-wook, one of the key persons involved with the Daejang-dong land development scandal, was unveiled that read “if Lee Jae-myeong is elected again, the development project pace will pick up speed. It would be much better if he is re-elected.” These words were spoken at a meeting with the residents of Daejang-dong in April 2014.
Nam’s words came when the municipal government of Seongnam did not even determine on the development of the land. However, Nam and Yoo, the chief director of the Seongnam Development Corporation(SDC) at that time, spoke and behaved as if the development project was already planned. In April 2012, Yoo told the press that Daejang-dong would be developed based on a public-private joint development approach. In 2013, he met with the residents of Daejang-dong to form a special purpose company and explained that the SDC would be involved in the project based on a 50% stake. Afterwards Nam tried to convince the residents that the development project would take off if Lee is re-elected, mentioning Yoo would be named head of SDC.
The development project proceeded as Nam and Yoo said it would. Lee drove the development project based on a public-private cooperation and SDC participated with a 50%+1 stake. Yoo became acting president of the SDC when choosing a private developer and promoting the project. The project was proceeded in a manner where private companies were able to get more profit. As a result, Na, as the actual owner of the corporation Cheonhwa Dongin, received dividends worth 100 billion won while Yoo was promised to receive 70 billion won from small asset management company Hwacheon Daeyoo.
Nam returned from the U.S. today and he will be summoned by the prosecution. Prosecutors will look for leads in suspicions over who made the decision to set up the scheme in a way favorable to his company, the extent to the lobbying activities made to political/government and legal circles and how much Lee is held accountable.