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Ex-CEO of construction firm indicted over donation to football club formerly headed by DP leader

National 19:09 September 30, 2022

SEONGNAM, South Korea, Sept. 30 (Yonhap) -- Prosecutors on Friday indicted a former CEO of Doosan Engineering & Construction Co. and an official of Seongnam City in connection with alleged corruption involving opposition leader Lee Jae-myung.

The case centers on allegations that the city government of Seongnam, just south of Seoul, had attracted about 16 billion won (US$11.2 million) in donations from six corporations, including Doosan, to its pro-football club in return for business favors in the mid-2010s.

Lee, leader of the main opposition Democratic Party (DP), was the city's mayor and owner of its football club, Seongnam FC, at that time.

This file photo shows the Seongnam branch of the Suwon District Prosecutors Office in Seongnam, just south of Seoul. (Yonhap)

The Seongnam branch of the Suwon District Prosecutors Office said it indicted a former CEO of the construction company for offering bribes. A Seongnam city official was charged with third-party bribery.

On Sept. 13, police transferred the case to the prosecution with an opinion of indictment of Lee and others. Police reportedly concluded a third-party bribery charge can be applied to Lee in connection with donations totaling 5.5 billion won made between 2014 and 2016 by Doosan Engineering.

Lee is suspected of changing the city's usage purpose for a 9,900-square-meter section of land owned by Doosan in the city's Bundang district from a hospital to commerce in return for the company's donation provided in the name of advertising expenses. Thanks to the zoning change, Doosan is said to have made huge profits.

Prosecutors raided the headquarters of Doosan Engineering on Sept. 16.

The other entities involved in the case are internet portal service Naver, Nonghyup Bank, CHA Bundang Medical Center, Alpha Dome City Co. and Hyundai Department Store.

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