Ex-Seoul councilor faces fraud allegations in redevelopment scandal

A former Seoul council member faces allegations of receiving approximately 800 million won in fraudulent service fees from a local redevelopment project. The company, led by Park Jin-woo, a former council member for Seodaemun District, reportedly received a total of 1.035 billion won from the Gajaul District 7 redevelopment union. The allegations surfaced when other companies claimed they performed the actual work for three of the five service contracts, totaling 860 million won, between 2016 and 2017.

These companies assert that Park's company, J-company, did not perform the services but pocketed the payments meant for them. One company, M-company, stated they possess contracts, payment records, and work logs from a decade ago and are pursuing legal action against the union leader. The payment details for J-company's contracts, including dates and amounts, precisely match the contracts and records of the other firms, with only the company name changed.

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I will not explain because it could be used in the election.

Further suspicions arise from the involvement of Park's family. J-company was listed among long-term unpaid companies by the union between 2022 and 2024, during which time Park's father served as the union's auditor. His accounting firm, co-owned by Park and his wife, handled the financial verification for service payments. Park's father is also reportedly the union's advisor and has acquired significant land in the area. Park himself purchased land within the district in August 2023, obtaining union member status.

Park Jin-woo has declined to comment on the allegations, citing potential misuse in his election campaign. He stated that his resignation from the council was solely to focus on campaigning and unrelated to the accusations. The controversy comes as Park is seeking re-election for the Seodaemun District council.

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I resigned from the council to campaign, and it has nothing to do with the allegations.