Hwacheon Daeyu Major Shareholder Kim Man-bae Charged with Breach of Trust, Bribery, and Embezzlement... Nam Wook, Jung Young-hak, and Jung Min-yong Also Cannot Escape Responsibility
[Asia Economy Reporter Baek Kyunghwan] The prosecution's efforts to identify the main figure behind the preferential treatment allegations in the Daejang-dong development are accelerating. Following former Seongnam Urban Development Corporation Planning Director Yoo Dong-gyu, Kim Man-bae, the major shareholder of Hwacheon Daeyu Asset Management and identified as a key accomplice, has become the second target. Kim is suspected of embezzling, breaching trust, and bribery involving a total of 200 billion KRW for the Daejang-dong development, while former Director Yoo, as the project head, is suspected of contributing to the so-called 'Daejang-dong team' pocketing billions in profits.
According to the legal community on the 13th, the Seoul Central District Prosecutors' Office's dedicated investigation team (led by Deputy Chief Prosecutor Kim Tae-hoon) has charged Kim with breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes involving approximately 110 billion KRW, bribery amounting to 75 billion KRW, and embezzlement of about 5.5 billion KRW. This amounts to a large-scale development corruption case totaling around 200 billion KRW, with Kim and former Director Yoo apparently exchanging project favors and compensation. The investigation team expedited securing Kim's custody following former Director Yoo due to concerns over evidence destruction. A prosecution official stated, "Given the large amount involved and the illogical explanations, including contradictions during the investigation, it seems the investigation was hindered."
In fact, Kim initially denied the statements in the recordings submitted by accountant Jeong Young-hak, which formed the basis of the investigation, such as "Cheonhwa Dongin No. 1 is not mine" and "Half of the dividends belong to that person," calling them "groundless," but later admitted to making the statements. Before changing his story repeatedly, Kim gave an implausible explanation, saying, "I knew about accountant Jeong's recordings at the time but lied," leading the investigation team to consider further questioning unnecessary.
The written statement from lawyer Jeong Min-yong (former head of the Strategic Business Team at Seongnam Urban Development Corporation), who was questioned for a long time as a reference, also played a role. Lawyer Jeong, who worked under former Director Yoo, submitted a statement to the investigation team saying, "Former Director Yoo told me several times that Cheonhwa Dongin No. 1 was his and that he had entrusted it to Kim under a borrowed name." The statement also included that former Director Yoo borrowed funds for divorce expenses and "agreed to receive 70 billion KRW from Kim and would receive it soon."
Although revealed after the warrant request, statements from lawyer Nam Wook, the owner of Cheonhwa Dongin No. 4, also suggest that Kim and former Director Yoo are key accomplices. Lawyer Nam stated, "I heard directly from Kim that Hwacheon Daeyu was not his property and that former Director Yoo had shares." Since the dividend payments began in 2019 for the Daejang-dong development project, Kim mentioned former Director Yoo's shares, with the amount varying between 40 billion KRW and 70 billion KRW. Lawyer Nam said, "Only Kim and former Director Yoo know the truth, and it will be revealed soon during the investigation."
However, since the warrants were requested based on the recordings and statements targeting former Director Yoo and Kim, investigations into other individuals are also expected to accelerate. Considering the disputes over project expenses among partners, there is a possibility of collusion to shift responsibility to specific individuals.
In fact, accountant Jeong, who submitted the recordings, cannot escape responsibility as the mastermind behind designing the Daejang-dong development profits. Accountant Jeong is known to have been deeply involved with former Director Yoo in structuring the business so that Hwacheon Daeyu and Cheonhwa Dongin could reap unlimited profits from land price increases.
Lawyer Jeong, who worked under former Director Yoo during the Daejang-dong project selection process, is in the same position. Lawyer Jeong is known to have served as an evaluation committee member for the Daejang-dong development project at Seongnam Urban Development Corporation and led the drafting of the project solicitation guidelines. Especially, due to his close relationship with former Director Yoo, he is suspected of establishing Yuwon Holdings and using it for money laundering related to development profits.
The last remaining key figure, lawyer Nam, is also highly likely to be the hidden mastermind. Although he left the country just before the Daejang-dong allegations surfaced and is currently staying in the United States with his family, it is reported that he recently hired lawyers from major domestic law firms to prepare for the prosecution's investigation. Lawyer Nam, who led the Daejang-dong development project since 2009, bought surrounding land and persuaded landowners directly for private development after LH (Korea Land and Housing Corporation) abandoned public development. He is also the actual owner of the controversial Cheonhwa Dongin No. 4. He invested 87.21 million KRW and received dividends of about 100.7 billion KRW.
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