Ex-special counsel indicted on bribery charges connected to development scandal

Prosecutors indicted former special counsel Park Young-soo on Monday on bribery charges connected to a high-profile property development scandal.

Park is charged with taking a combined 1.9 billion won (US$1.4 million) from private developers in return for helping them land the so-called Daejang-dong project, including 800 million won he allegedly took while serving as the chair of the Woori Bank board of directors from 2014-15.

Under the project, the Daejang-dong district in Seongnam, south of Seoul, was developed into apartment complexes, and the private developers’ firm, Hwacheon Daeyu, reaped astronomical profits.

Prosecutors also suspect Park additionally pocketed 1.1 billion won between 2019-21 in the form of a loan to his daughter while being promised 20 billion won in total in return for facilitating business favors for the developers.

Woori Band had initially considered investing in the private developers’ consortium formed to win the development deal but backed out. Instead, the bank issued a letter of intent to extend a loan in favor of the private developers, an action seen decisive in the developers’ winning of the preferred bidder status for the project.

The Seoul Central District Prosecutors Office brought charges of bribery and graft as they indicted Park under physical detention Monday.

Park is also one of several prominent figures in the “5 billion club,” who were allegedly promised 5 billion won each by asset management firm Hwacheon Daeyu, along with former ruling party lawmaker Kwak Sang-do and former Prosecutor General Kim Soo-nam.

Park rose to fame after investigating a corruption scandal involving the ousted former President Park Geun-hye as a special counsel in 2017.