At the time of the development project in Daejang-dong, Seongnam-si, Gyeonggi-do, which is suspected of preferential treatment and lobbying, a court testimony by accountant Min-geol Kim predicted that more profits would be generated than the feasibility evaluation of a private research institute.
On the 14th, the 22nd Criminal Settlement Division of the Seoul Central District Court (Chief Judge Lee Jun-cheol) held the 14th trial between Yoo Dong-gyu, former head of the planning division of Seongnam Urban Development Corporation, Kim Man-bae, a major shareholder of Hwacheon Daeyu Asset Management (Hwacheon Daeyu), Nam Wook and Jung Min-yong, and Jeong Young-hak accountant Kim Min-geol. Conducted an accountant’s witness examination.
Accountant Kim joined Seongnam Urban Development Corporation in November 2014 on the recommendation of accountant Jeong Young-hak, the real owner of No.
In the same day’s new paper, the prosecution asked, “Did the Daejang-dong development project sufficiently predict that the profits would be higher than the feasibility evaluation of the Korea Economic Research Institute?”
To this, accountant Kim replied, “The assumption of cash flow for the feasibility service itself may be conservative.”
When the prosecution asked once more, “Isn’t it easy to predict that a lot more profit is expected than the actual service?”, accountant Kim said, “It seems reasonable to see that more profits can be generated than the result of the service rather than much more.”
The Strategic Business Team is a department that played a major role in the Daejang-dong project, such as drafting the Daejang-dong competition guidelines. Attorney Jeong, who was the part head of the strategic business team, was in charge of the practical work such as drafting the competition guidelines. In the public offering guidelines, the ‘excess profit redemption clause’ was deleted, which became the main basis for the suspicion of preferential treatment.
Prosecutors believe that at the time of the Daejang-dong development project in 2015, General Manager Yoo Jeon and others created the business structure in a way that limits the profits of the corporation in order to drive huge profits to private operators.
Former general manager Yoo and others were indicted on charges of driving Hwacheon Daeyu and its affiliates Cheonhwa-dongin Nos. 1-7 in housing site development profits worth at least 65.1 billion won and implementation profits worth at least 117.6 billion won, and inflicting hundreds of billions of won in damages to the construction company.
(Seoul = News 1)
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