'Hwacheondaeyu Major Shareholder' Kim Man-bae Appears at Police Station... "No Illegal Activity" (Update)

Assemblyman Kwak Sang-do's Son's 5 Billion Won Severance Pay
"Our Company's Basic Severance Pay is 500 Million Won"
Advisory Group Including Key Legal Figures
"They Provided Psychological Advice... No Quid Pro Quo"

Kim Man-bae, the largest shareholder of Hwacheon Daeyu, who has been suspected of receiving special favors during the development process of Daejang-dong in Seongnam-si, Gyeonggi-do, is appearing at the Yongsan Police Station in Seoul on the 27th for investigation. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Jeong Dong-hoon] Kim Man-bae, the largest shareholder of Hwacheon Daeyu Asset Management (Hwacheon Daeyu), which is suspected of receiving special favors in the Daejang-dong district development project in Seongnam-si, Gyeonggi Province, appeared at the police station on the 27th for a witness investigation.

Kim entered the Yongsan Police Station in Seoul at around 9:55 a.m. that day and stated, "There was no illegality," adding, "I will sincerely explain during the police investigation."

Regarding the formation of a legal advisory group, estimated to include about 30 key figures from the legal community, he said, "There was no quid pro quo," and added, "They were people who gave me a lot of psychological advice, so I invited them, but I apologize for unintentionally becoming embroiled in controversy."

According to the Financial Supervisory Service's electronic disclosure system, Kim borrowed 47.3 billion won from Hwacheon Daeyu in April under the name of a long-term loan. The police are expected to focus on investigating the circumstances and usage of the large company funds borrowed.

Hwacheon Daeyu participated in the Daejang-dong public development project promoted by Gyeonggi Province Governor Lee Jae-myung, a leading presidential candidate of the Democratic Party of Korea, when he was mayor of Seongnam, and received dividends amounting to 1,154 times the invested capital, raising suspicions of special favors.