Arrest warrant sought for former independent prosecutor over '5 billion won club'

Former special prosecutor Park Young-soo. Park indicted President Park Geun-hye and confidant Choi Seo-won, more commonly known as Choi Soon-sil, after Park was impeached in 2017. [YONHAP]

Prosecutors have asked the court to issue an arrest warrant for former independent prosecutor Park Young-soo over allegations related to the so-called “5 billion won club” connected to the Daejang-dong development scandal.

The arrest warrant against the former independent prosecutor came nearly two years after the investigation on the Daejang-dong development began in September 2021.

The prosecutors’ office accuse Park of taking bribes from the Daejang-dong developers led by former journalist Kim Man-bae.

Park was the head of the independent prosecutors’ team that indicted former President Park Geun-hye, who was impeached in 2016.

According to the prosecutors’ office, Park played an intricate role in the forming of the Daejang-dong development consortium.

Park is accused of lending Kim 500 million won ($382,000), which is suspected as the initial investment, and pressuring Bookook Securities against joining the Daejang-dong consortium while playing a role in getting a project finance loan from Woori Bank in 2014 where he was the board’s chairman.

In exchange, Park demanded the former journalist provide him with 20 billion won in real estate, including a commercial building.

His daughter also worked for Kim’s company for three years and she got a discount when purchasing the Daejang-dong apartment.

Park’s cousin Lee Gi-seong was also given an exclusive contract to sell some of the Daejang-dong apartments.

The “5 billion won club” refers to seven people that were promised 5 billion won from the Daejang-dong developers.

Their identities were disclosed by a recorded conversation between former journalist Kim and accountant Chung Young-hak in March 2020.

In addition to Park, other prominent members include former Supreme Court Justice Kwon Soon-il, former People Power Party Rep. Kwak Sang-do, Prosecutor General Kim Soon-nam, former Blue House senior secretary during the Park Geun-hye government Choi Jae-kyung and the chairman of business media outlet Money Today, Hong Seong-guen, which Kim worked at.

Democratic Party leader Lee Jae-myung is also implicated in the Daejang-dong scandal as he approved the development scheme as Seongnam mayor at the time.

BY LEE HO-JEONG [lee.hojeong@joongang.co.kr]