[Daechang-dong Investigation Fallout] Prosecution, Rushing In Without Account Tracking, Virtually Defeated in Detention Hearing

[Asia Economy Reporter Kim Hyung-min] "While the necessity to guarantee the suspect's right to defense is significant, it is difficult to see that the necessity for detention of the suspect has been sufficiently demonstrated."

The explanation given by Moon Seong-hwan, the chief judge in charge of warrants at the Seoul Central District Court, who dismissed the arrest warrant request for Kim Man-bae, the major shareholder of Hwacheon Daeyu Asset Management (Hwacheon Daeyu) and a key figure in the Daejang-dong development preferential treatment and lobbying allegations, essentially signifies a 'complete defeat' for the prosecution.

The dismissal is evidence that the prosecution's investigation was inadequate. The detention hearing serves as a mock exam where the prosecution and the suspect's side clash for the first time during the investigation stage before going to trial. In that sense, the prosecution lost the first round against Kim's legal team.

The impact of the dismissal of the arrest warrant is quite significant. The prosecution's sudden raid on Seongnam City Hall the very next day, on the 15th, is not unrelated to this.

The dedicated investigation team of the Seoul Central District Prosecutors' Office sent prosecutors to Seongnam City Hall around 9 a.m. that day to secure related materials from departments involved in the Daejang-dong development project, such as the Urban Housing Bureau, Education, Culture and Sports Bureau, and the Cultural City Project Group.

Since the raid was delayed, it is uncertain whether meaningful materials can be obtained. There are concerns that if no significant findings are made, the investigation will see little progress.

In the legal community, the prosecution's failure to verify the flow of funds through account tracing is considered the biggest blunder in this investigation. If related evidence is not found going forward, there will be no turnaround to reverse the current sluggish progress.

In fact, during the detention hearing, the prosecution only presented the recorded statements of accountant Jeong Young-hak as key evidence and failed to provide any evidence regarding the flow of funds. It is known that the arrest warrant mentioned Kim's embezzlement charges but stated the amount as 'unknown.'

Kim Man-bae, a key figure in the preferential treatment allegations related to the Daejang-dong development project in Seongnam, Gyeonggi Province, and the major shareholder of Hwacheon Daeyu, is appearing at the Seoul Central District Court in Seocho-gu, Seoul on the 14th to undergo a pre-arrest detention hearing. Photo by Moon Ho-nam munonam@

A lawyer with a prosecution background analyzed, "In embezzlement and breach of trust charges, clarifying where the money flowed is very important. It is natural to argue the risk of evidence destruction during the detention hearing based on this, but the prosecution failed to do so."

Additionally, it has been confirmed that the prosecution also hindered the police, who were tracking the flow of funds ahead of them, drawing even harsher criticism. Around the 6th, the police applied for a search warrant for accounts of Hwacheon Daeyu and its affiliates based on data from the Financial Intelligence Unit (FIU), but the Suwon District Prosecutors' Office rejected it, saying the investigation needed supplementation.

Meanwhile, the past career of Kim Oh-soo, the head of the prosecution, further fuels the theory of the prosecution's inadequate investigation. It has been revealed that Kim served as a legal advisor to Seongnam City, Gyeonggi Province, for about five months before his appointment, causing him embarrassment.

According to the legal community, Kim served as Seongnam City's legal advisor from December 1 last year to May 7 this year. He signed a two-year contract with Seongnam City upon recommendation from the local bar association but resigned after being nominated as Prosecutor General.

As suspicions grew, Kim acknowledged through the Supreme Prosecutors' Office, "I was appointed as a legal advisor to Seongnam City, where I have lived for over 10 years, as part of regional service," and issued a statement saying, "I have no connection whatsoever with the Daejang-dong case and have already directed the Central Investigation Chief to conduct a swift and thorough investigation regardless of political affiliation or status."

Amid growing criticism and concerns, the prosecution's next moves have become even more crucial as they consider whether to push forward head-on. Next week will mark 20 days since the dedicated investigation team for the Daejang-dong allegations was formed. The prosecution appears likely to reapply for Kim's arrest warrant and is coordinating schedules to summon and investigate another 'key man,' lawyer Nam Wook.