Yonhap News reported Monday that the Seoul Central District Prosecutors Office’s Anti-Corruption Investigation Division 3 dismissed the complaint on April 17. The case alleged abuse of authority, obstruction of others’ exercise of rights and dereliction of duty.
The allegations surfaced during the 20th presidential election campaign alongside claims of preferential treatment in the Daejang-dong and Baekhyeon-dong development projects. The Korea Gas Corp. project involved redeveloping the company’s former site at 215 Jeongja-dong in Bundang-gu into a residential complex. The site covers 16,725 square meters.
After the company’s headquarters moved to Daegu in September 2014, the property went through a sales process. But it failed to sell six times because regulations for business and commercial use limited the floor area ratio to 400% or less and the building coverage ratio to 80% or less.
In June 2015, Company A won the site through a competitive bid. The complaint alleged that Lee, then Seongnam mayor, allowed housing development on the site and raised the floor area ratio to 560% in exchange for conditions such as donating buildings to the city.
Prosecutors concluded the complaint was speculative and lacked sufficient specific grounds or circumstances to open a formal investigation, and dismissed the case.
* This article has been translated by AI.
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