Prosecutors indict DP chief Lee Jae-myung over corruption charges

Prosecutors indicted Democratic Party Chairman Lee Jae-myung over corruption charges related to the land development project in Baekhyeon-dong in Seongnam, Gyeonggi, Thursday morning.

Democratic Party leader Lee Jae-myung, center, waves to supporters after being discharged from Green Hospital in Jungnang District, northern Seoul, Monday afternoon, where he was hospitalized for deteriorated health while undergoing a hunger strike. [YONHAP]

Prosecutors indicted Democratic Party leader Lee Jae-myung over corruption charges related to the land development project in Baekhyeon-dong in Seongnam, Gyeonggi, Thursday morning.

The Seoul Central District Prosecutors' Office indicted Lee without detention on charges of breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes.

This comes 15 days after a Seoul district court dismissed an arrest warrant for Lee on Sept. 27.

The prosecution alleges Lee gave preferential treatment to a private developer in the Baekhyeon-dong development project between April 2014 and March 2018, during his time as mayor of Seongnam.

Prosecutors accused Lee of incurring at least 20 billion won ($15 million) in damages to the Seongnam Development Corporation, while the private developer made profits amounting to some 135.6 billion won due to the alleged preferential treatment.

Prosecutors also indicted Lee’s former aide, Jeong Jin-sang, for breach of trust on the same day.

Jeong and Lee are accused of colluding together to exclude the Seongnam city developer from the construction project to favor lobbyist Kim In-seop, suspected of helping the DP chairman during his mayoral campaign.

Last month, the DP-controlled National Assembly passed a motion waiving Lee's immunity to arrest, the first time the parliament consented to arrest the leader of a major political party.

Lee has been accused of involvement in land development scandals in Seongnam, Gyeonggi, during his time as the city's mayor, and underwear company Ssangbangwool's illegal cash remittance to North Korea during his time as Gyeonggi governor.

The prosecution said it plans to conduct further investigations into bribery allegations related to Ssangbangwool’s illegal remittances to North Korea.

BY SARAH KIM [kim.sarah@joongang.co.kr]