Kim Man-bae Appears at Prosecution... Possibility of Confrontation Investigation with Yoo Dong-gyu (Comprehensive)

Kim Man-bae, the major shareholder of Hwacheon Daeyu Asset Management and a key figure in the Daejang-dong development lobbying and preferential treatment allegations, is appearing as a suspect at the Seoul Central District Prosecutors' Office in Seocho-gu, Seoul, on the 11th. Photo by Yoon Dong-ju doso7@

[Asia Economy Reporter Seongpil Cho] Kim Man-bae, the major shareholder of Hwacheon Daeyu, appeared at the prosecution on the 11th as a suspect.

Kim appeared at the Seoul Central District Prosecutors' Office in Seocho-gu, Seoul, at around 9:45 a.m. to be investigated regarding the Daejang-dong development project allegations. To the waiting press, he said, "I am very sorry for causing a commotion," and "I will sincerely cooperate with the investigation." Kim claimed that he is the actual owner of Cheonhwa-dongin No. 1 but insisted, "The various allegations raised are due to deliberately edited recordings." He added, "There has never been any illegal fund transactions," and "If the prosecution thoroughly investigates the deposit and withdrawal details of the funds, many of the current allegations will be resolved."

The recordings Kim referred to were submitted by accountant Jung Young-hak, the owner of Cheonhwa-dongin No. 5, during a previous prosecution investigation. The recordings contained claims that Kim's side had provided 35 billion KRW in lobbying funds and handed tens of billions of KRW to Seongnam city council members and others. Kim's side has explained, "The contents of the recordings have been exaggerated during the profit distribution process among investors and are not true." The dedicated investigation team at the Seoul Central District Prosecutors' Office (led by Deputy Chief Prosecutor Kim Tae-hoon) is expected to focus on questioning Kim about these allegations of bribery involving political and business circles.

Kim also denied allegations that he influenced the Supreme Court ruling on Gyeonggi Province Governor Lee Jae-myung by visiting former Supreme Court Justice Kwon Soon-il. He said, "Our judiciary is not a place that moves based on the speculations and patchwork thoughts of gossipers," and "The talk about the trial is absurd." Regarding the reason for his visit, Kim claimed, "Former Justice Kwon is a senior from my hometown, and I sought a lot of advice to take over other matters," adding, "That part has been misunderstood and distorted."

It was confirmed that Kim visited former Justice Kwon both shortly before the Supreme Court's full bench referral of Governor Lee's public election law violation case last year and the day after the Supreme Court acquitted him. This has led to allegations of 'trial trading,' mainly from opposition parties. After retiring, former Justice Kwon received a monthly legal advisory fee of 15 million KRW from Hwacheon Daeyu. The investigation team is expected to verify whether this advisory fee is related to or a quid pro quo for the Supreme Court's decision to remand Governor Lee's case.

Kim Man-bae, the major shareholder of Hwacheon Daeyu Asset Management and a key figure in the Daejang-dong development lobbying and preferential treatment allegations, is bowing his head while appearing as a suspect at the Seoul Central District Prosecutors' Office in Seocho-gu, Seoul on the 11th. Photo by Yoon Dong-ju doso7@

Kim also addressed the payment of 5 billion KRW in severance pay to Byung-chae, son of Assemblyman Kwak Sang-do, saying, "He was injured while working for us," and "It was handled normally within the company's bonus and severance pay distribution structure." When questioned about whether this was normal, he said, "I will think about it more carefully."

Kim is also suspected of agreeing to give 25% of the development profits as a reward to former Seongnam Urban Development Corporation Planning Director Yoo Dong-gyu, who was previously arrested, for facilitating the Daejang-dong development project. After the development profits exceeded expectations, Kim reportedly agreed to give Yoo's side 70 billion KRW and actually delivered 500 million KRW earlier this year. The investigation team noted the 500 million KRW in Yoo's arrest warrant as a bribe.

Since the investigation team arrested former Director Yoo on charges including bribery, there is a possibility that they will also request an arrest warrant for Kim, the bribe giver. The investigation team is also questioning former Director Yoo, who is currently detained, from the morning. Depending on necessity, a confrontation investigation between the two may take place. The use of the 47.3 billion KRW Kim borrowed from Hwacheon Daeyu is also under investigation. Kim's investigation is expected to continue until late afternoon.