Verification of Transcript Authenticity Related to Former Seongnam Urban Development Corporation Director Yoo Dong-gyu... Investigation Expands to Political and Governmental Suspicion
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 Bae Kyunghwan] The prosecution, currently investigating allegations of preferential treatment in the Daejang-dong development project, is set to summon Kim Man-bae, the major shareholder of Hwacheon Daeyu, for questioning soon. Kim is suspected of having handed money to Yoo Dong-gyu, the former Planning Director of Seongnam Urban Development Corporation, who has already been detained and is considered a key figure in the Daejang-dong case. The prosecution is investigating the flow of funds within Hwacheon Daeyu as well as lobbying suspicions centered around Kim.
According to the legal community on the 5th, the dedicated investigation team for the Daejang-dong development allegations at the Seoul Central District Prosecutors' Office (led by Deputy Chief Kim Tae-hoon) plans to summon Kim, a former legal journalist known as the actual owner of Hwacheon Daeyu and Cheonhwa Dongin No. 1, as early as this week to verify the authenticity of recorded conversations involving Kim and former Director Yoo.
Earlier, the investigation team completed the analysis of 19 recorded files provided by accountant Jung Young-hak, who was identified as the designer of the profit distribution for the Daejang-dong development project, during his witness testimony. These recordings reportedly include evidence of bribery involving Hwacheon Daeyu and major shareholders of Cheonhwa Dongin, who received dividends worth around 400 billion KRW, as well as conversations between Kim and former Director Yoo.
A representative of the investigation team stated, "We do not know the detailed contents," but added, "Since the investigation started with the recordings, confirming the identities of the individuals appearing in them is the first step." Accountant Jung, who appears in the recordings, has already been questioned, and former Director Yoo is in custody, leaving Kim as the remaining person to be summoned.
The investigation team is expected to question Kim about various solicitations related to the design of the Daejang-dong project and unexplained flows of funds. The content of the recordings discussing how Kim and former Director Yoo divided 70 billion KRW of profits from the project will also be scrutinized. So far, the investigation team has included in Yoo’s arrest warrant allegations that he received 500 million KRW from Kim in January.
Former Director Yoo has completely denied the allegations. His side explained that the money was borrowed with an IOU for business funds for retirement and divorce alimony, and that the profit-sharing discussions in the recordings were made in jest. However, considering that bribery charges are not resolved solely by the recipient’s denial, the investigation team is likely to question Kim from the perspective of a ‘bribe giver.’ Previously, Kim was questioned once by the police regarding suspicious fund flows of around 8 billion KRW in Hwacheon Daeyu detected by the Financial Intelligence Unit (FIU) in April.
Starting with Kim, the investigation into lobbying suspicions involving high-ranking political and government officials who protected Hwacheon Daeyu to secure preferential profits amounting to thousands of billions of KRW is expected to accelerate. Allegations linked to Hwacheon Daeyu so far include 5 billion KRW delivered as severance pay to the son of lawmaker Kwak Sang-do, an apartment sold below market price to the daughter of former special prosecutor Park Young-soo, and 10 billion KRW provided to a relative of former special prosecutor Park.
Following key figures appearing in the recordings, the investigation team is also expected to concurrently investigate the owners of Cheonhwa Dongin Nos. 1 to 7 and current and former executives of Seongnam Urban Development Corporation. This is to examine why they were able to receive massive dividends and the background that allowed private developers to participate in the first place. Some speculate that the investigation team may expand the scope to include the Wirye New Town project, in which former Director Yoo, lawyer Nam Wook?owner of Cheonhwa Dongin Nos. 4 and 5?and accountant Jung are known to have been involved.
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