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New Developments Spotted at Companies Owned by Nam Wook, Key Figure in 'Daejang-dong Scandal'

[비즈한국] New movements have been detected at NSJ Holdings (formerly Cheonhwa Dongin No. 4) and its subsidiary NSJPM, which had halted operations due to their involvement in the Daejang-dong development project. It has been confirmed that NSJ Holdings appointed a new CEO earlier this year, and NSJPM recently relocated its office. Both companies are controlled by lawyer Nam Wook, a central figure in the Daejang-dong development corruption scandal, and they had effectively ceased operations after the scandal erupted in 2021. These new developments this year have led to mixed interpretations.

As of the end of last year, lawyer Nam Wook is the largest shareholder of NSJ Holdings, holding a 79.68% stake. The remaining 20.32% is held by Bomiden Co., Ltd. NSJ Holdings participated as a shareholder in 'Seongnamui Tteul,' the special purpose company (SPC) created for the Daejang-dong development. NSJ Holdings received significant dividends during the course of the Daejang-dong project.

NSJ Holdings owns 100% of NSJPM. NSJPM is a real estate development firm established in 2021. In 2021, NSJPM purchased a gas station site located in Yeoksam-dong, Gangnam-gu, Seoul. It was known that they intended to build a new structure there.

However, following the outbreak of the Daejang-dong development scandal in late 2021, NSJ Holdings and NSJPM effectively suspended operations. Lawyer Nam Wook, who served as the CEO of both companies at the time, found it difficult to focus on management as the prosecution's investigation began.

Lawyer Nam Wook eventually resigned as CEO of NSJPM in August 2022, and another individual named Nam was appointed as his successor. In March of this year, Nam Wook also resigned as CEO of NSJ Holdings. The successor at NSJPM, Mr. Nam, now also holds the position of CEO at NSJ Holdings. However, no news regarding business activities has been reported even after the change in leadership.

However, it has been confirmed that NSJPM moved its headquarters from Guro-gu to Geumcheon-gu in Seoul this September. The new location where NSJPM registered its headquarters is a shared office space. Bizhankook visited this shared office on November 10, but the office was closed, and we could not meet any company representatives. This has led to conflicting speculations regarding whether NSJPM is resuming business or preparing for liquidation.

That said, it does not appear that the Yeoksam-dong development project will be pursued immediately. The gas station building that NSJPM purchased in 2021 was demolished earlier this year, and the site is currently being used as a parking lot. This plot was seized by the state in May last year, and the building itself was also seized in March of this year, despite already being demolished.

Bizhankook visited the Yeoksam-dong site on November 13. There were no signs of construction resuming, and the parking lot was being managed by a third-party contractor.

Meanwhile, on October 31, lawyer Nam Wook was sentenced to four years in prison for violating the Act on the Aggravated Punishment, etc. of Specific Economic Crimes. While Mr. Nam has filed an appeal, the prosecution has waived its right to appeal. As long as Mr. Nam remains incarcerated, it will be difficult for him to engage in direct management activities at NSJ Holdings or NSJPM for the time being.