Regional body developing East coast Free Economic Zone raided over alleged business favors

free economic zone-investigation

Regional body developing East coast Free Economic Zone raided over alleged business favors

SEOUL, July 11 (Yonhap) -- Police raided the East coast Free Economic Zone (EFEZ) Authority, a regional government body developing a free economic zone along the east coast, Tuesday on suspicion of giving business favors to a private developer.

The National Police Agency sent investigators to the EFEZ Authority's office in the east coast city of Donghae, the residence of former EFEZ Authority Commissioner Shin Dong-hak and two other locations to seize evidence.

The EFEZ is a 12-year regional project launched in 2013 to develop a free economic zone in and around the city of Donghae on a budget of 885.9 billion won (US$685 million). The project seeks to nurture the zone into Northeast Asia's economic center, specializing in high-tech materials and high-end tourism.

Police have been investigating allegations that a private developer, surnamed Nam, was given preferential treatment in the process of his selection in 2018 as a private partner to develop the Mangsang District as part of the project. Nam was apprehended in April last year in connection with a massive home rental scam in Incheon, 27 kilometers west of Seoul.

Police suspect Shin and other officials ordered a rewriting of the assessment report by the regional body's evaluation committee in charge of selecting private development partners around the committee's decision-making session in July 2017.

Through investigations, the regional government of Gangwon Province and prosecutors had previously concluded the allegations were groundless, but the police reopened the case over allegations that high-level politicians in the region might be involved in the selection process.

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