Democratic Party leader Lee Jae-myung indicted

Democratic Party Chairman Lee Jae-myung in a meeting at the National Assembly in western Seoul on Wednesday. [NEWS1]

Prosecutors indicted Democratic Party (DP) leader Lee Jae-myung on Wednesday on several charges including breach of duty, conflict of interest, corruption, bribery and concealment of criminal proceeds.

The Seoul Central District Prosecutors’ Office indicted the DP chair in relation to profiteering scandals regarding the Wirye and Daejang-dong development projects and for illegal corporate sponsorship of Seongnam football club.

Lee's indictment without detention comes a year and a half after the investigation into the Daejang-dong case first started.

Lee has repeatedly denied the allegations against him.

“What they’ve been doing so far has been a political show,” Lee said in a party meeting at the National Assembly on Wednesday. “I will do my best to uncover the truth in court, and I believe that the truth will be revealed in the end.”

Prosecutors claim Lee contributed to some 489.5 billion won ($374 million) in financial damages to the Seongnam Development Corporation by approving the removal of a profit-sharing arrangement for the Daejang-dong project, enabling private contractors to pocket exponential profits.

Lee is also accused of sharing inside information with private contractors about a development project in Wirye, which spans the southern portion of Seoul’s Songpa District and northern Sujeong District in Seongnam, Gyeonggi, and allowing them to pocket profits of 21.1 billion won.

The Wirye New Town development has been dubbed “the prequel of Daejang-dong" for its similarities with a later development project in the city of Seongnam that is also surrounded in controversy.

Both Wirye and Daejang-dong, which started in 2013 and 2015 respectively, were led by mixed public-private consortiums.

Several people played key roles in both developments, including Yoo Dong-kyu, the former acting president of the Seongnam Development Corporation, as well as lawyer Nam Wook and former journalist Kim Man-bae.

Yoo has been indicted on charges of bribery and breach of trust in the Daejang-dong scandal. He is also accused of using internal information to give preferential treatment to private investors in the Wirye New Town project in return for bribes.

Kim and Nam were indicted and arrested for bribery and breach of trust in November 2021.

Kim was also accused of trying to hide 34 billion won from the Daejang-dong development project in a safe in an officetel under someone else’s name between October 2021 and November 2022, and trying to hide 14.2 billion won through another friend in December 2022 after the court ordered that profits from Daejang-dong be seized.

Kim, who was released in November 2022 after his detention warrant expired, tried to take his own life the following month. He was hospitalized and has since recovered. He was re-arrested in February on charges of concealing criminal proceeds and destruction of evidence.

Lee, who was mayor of Seongnam from 2010 to 2018, is also accused of taking donations from companies including Doosan E&C and Naver via the city’s football club, Seongnam FC.

The prosecution said on Wednesday that they believe Lee received some 13.35 billion won in donations from these companies in return for relaxing development regulations.

Prosecutors requested an arrest warrant for Lee last month. The request was handed over to the National Assembly for approval as Lee is a sitting lawmaker. The Assembly rejected the request.

As many as five peopled tied to Lee are suspected of taking their own lives since investigations began, including his former aide Jeon Hyeong-su; Kim Moon-gi, former director of the Seongnam Development Corporation's project development team; Yoo Han-ki, president of the Pocheon Development Corporation and former head of the Seongnam Development Corporation's project development project division; and a whistleblower surnamed Lee.

BY ESTHER CHUNG [chung.juhee@joongang.co.kr]