'Hwacheon Daeyu Major Shareholder' Kim Man-bae, 12-Hour Police Investigation... "Mediated for Kwak Sang-do's Son"

Kim Man-bae, the largest shareholder of Hwacheon Daeyu Asset Management (Hwacheon Daeyu), which has been suspected of receiving special favors in the Daejang-dong development project in Seongnam-si, Gyeonggi Province, is leaving Yongsan Police Station in Seoul on the afternoon of the 27th after completing an investigation as a witness.
[Image source=Yonhap News]

[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, was released after being questioned for 12 hours.

He was questioned at the Yongsan Police Station in Seoul around 10:25 p.m. that day and stated, "I will actively cooperate with the investigation going forward" and "I will help to resolve the suspicions."

Regarding the suspicion that the son of independent lawmaker Kwak Sang-do (former People Power Party lawmaker) worked at Hwacheon Daeyu and suffered an industrial accident but did not apply for industrial accident compensation from the Korea Workers' Compensation and Welfare Service, he said, "He did not apply for industrial accident compensation, but he suffered a middle injury," and "At that time, our company judged it as a middle injury."

He added, "Since it is his privacy, he will submit it later if necessary," and "He has a hospital diagnosis," and said, "Because it is personal privacy, it cannot be disclosed carelessly."

When asked if he had met Gyeonggi Governor Lee Jae-myung, a presidential candidate from the Democratic Party, since a media interview in 2014, he replied, "No." When asked if he had a personal connection with Yoo Dong-gyu, former Planning Director of Seongnam Urban Development Corporation, known as the person who conceived the Daejang-dong development project, he avoided a direct answer. Mr. Kim left in a prepared car.

The police had earlier received a request from the Financial Intelligence Unit (FIU) in April to check Hwacheon Daeyu's fund flow and account transaction details and assigned the case to the Yongsan Police Station. Currently, Mr. Kim is suspected of breach of trust and embezzlement, including borrowing 47.3 billion won from Hwacheon Daeyu under the name of long-term loans and not repaying it. The police are expected to question Mr. Kim about the purpose of fund usage.

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

The police also plan to coordinate schedules and summon Mr. Lee, the representative of Cheonhwa Dongin, as a witness for questioning.