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Prosecution Investigating Busan Project

Posted September. 04, 2007 07:45,   

한국어

The prosecution, which is investigating allegations concerning former presidential protocol secretary Jeong Yun-jae (43) and Busan-based construction firm owner Kim Sang-jin (41), revealed on September 3, “The focus of this investigation involves allegations about the process of Kim’s development project of Yeonsan-dong in Busan.”

A senior prosecutor announced, “We are seriously considering expanding the investigation team,” and the Supreme Prosecutors’ Office dispatched an account-tracing team to the Busan District Prosecutors’ Office.

There are allegations about the execution process of the development project, during which Kim embezzled a total of 250 billion won from construction costs by setting up the poorly performing company “I” to build 1,440 apartment homes over an 87,054 m² site in Yeonsan-dong.

The prosecution are verifying where the 15 billion won (which is part of the 44 billion won that Kim embezzled during the redevelopment project) was used, and is planning to investigate allegations of a missing 70 billion won out of 265 billion won in project financing.

Prosecutors are tracing five to six of Kim’s false-name bank accounts to probe the whereabouts of the money Kim embezzled.

They are also prohibiting Kim and his brother (aged 44), as well as four to five implicated persons, from leaving the country.

The prosecution summoned the indicted former head of Busan tax service Jeong Sang-gon on September 3, and made inquiries about the whereabouts of the 100 million won Jeong received from Kim in August 2006.

Meanwhile, Kim has vanished and failed to appear as a summoned witness in the trial of an employee named Jin on August 30. His attorney Lee said, “After last week’s news, he cut off contact.”



verso@donga.com