Prosecutors Investigate Former Pyeongtaek Mayor Kim Seon-gi Over Posung 2 Industrial Complex Irregularities

The Suwon District Prosecutors' Office is directing its investigation toward former Pyeongtaek Mayor Kim Seon-gi over irregularities at Pyeongtaek's Posung 2 industrial complex.

The Pyeongtaek branch of the Suwon District Prosecutors' Office, investigating the Posung 2 Industrial Complex corruption case, revealed during the first trial on the 23rd of a Pyeongtaek city official surnamed Yu (52, grade 5) who was indicted on bribery charges that it is investigating whether Yu's illegal activities were carried out under the direction of former Mayor Kim.

The prosecutors' office, which launched an investigation into the Posung 2 Industrial Complex irregularities in April, had remained silent about whether to investigate the former mayor. However, when the court asked whether the office had investigated the former mayor to prove Yu's charges, the prosecutors' office confirmed that it had.

Yu, a section chief at the City's Business Policy Division, was indicted on charges of requesting that special purpose company Posung Sandan Co., Ltd.'s largest shareholder Uoyang HC hire two employees in July 2011 and receiving approximately 26 million won through their accounts over about 30 occasions. The Business Policy Division is the competent department for the Posung 2 Industrial Complex development project.

Yu is also facing charges of receiving approximately 24 million won from Uoyang HC under the pretext of vehicle purchase costs for Organization A.

Prosecutors are reportedly investigating with the view that the former mayor was involved in this process.

Yu's attorney denied the charges entirely during the trial held before the Criminal Division 2 of the Suwon District Court, Pyeongtaek Branch (Presiding Judge Choi Seok-moon) on the 23rd, stating that "Yu only requested the hiring of two employees from Uoyang HC and never received any money."

The attorney also stated that "the vehicle was received from Uoyang HC under the social contribution initiative and was delivered to Organization A."

Previously, prosecutors had been investigating since April why the Pyeongtaek Urban Development Corporation jointly invested with Uoyang HC to establish special purpose company Posung Sandan Co., Ltd., and inappropriately provided debt guarantees worth approximately 213 billion won during the industrial complex development process.

On the 13th of last month, prosecutors indicted Yu and Lee, a Pyeongtaek Urban Development Corporation executive (49), on charges of receiving money and valuables from Uoyang HC.

Yu's next trial is scheduled for 2 p.m. on the 22nd of next month.