Prosecutors Decide to Refile Warrant for Kim Man-bae After Investigating Nam Wook

Arrest of Nam Wook on Charges Including Promise of Bribery
Former Chief Yoo Dong-gyu to Be Prosecuted on the 20th

Nam Wook, a key figure in the Daejang-dong development lobbying and preferential treatment allegations who was staying in the United States, returned to Korea on the 18th through Incheon International Airport Terminal 2. He was arrested by prosecution investigators and is boarding a transport vehicle. Photo by Moon Honam munonam@

[Asia Economy reporters Seongpil Cho and Hyowon Jang] Nam Wook, a lawyer who was arrested and is under investigation at Incheon International Airport around 5 a.m. on the 18th, has been involved in the Seongnam Daejang-dong development project since 2009 along with accountant Jung Young-hak. He is known as one of the "Daejang-dong Four" together with Kim Man-bae, the major shareholder of Hwacheon Daeyu, and Yoo Dong-gyu, former head of planning at Seongnam Urban Development Corporation. The Seoul Central District Prosecutors' Office special investigation team (led by Deputy Chief Prosecutor Kim Tae-hoon) cited charges including promise of bribery in the arrest warrant.

The investigation team suspects that Kim, the major shareholder of Hwacheon Daeyu, promised to pay Yoo, the former head, 25% (about 70 billion KRW) of the profits from the Daejang-dong development as a reward for receiving preferential treatment during the private business selection process in 2015, and that this amount was delivered through lawyer Nam in the form of an investment. This suspicion largely aligns with the contents of the recorded conversations submitted by accountant Jung. The investigation team also plans to inquire about the true owner of Cheonhwa Dongin No. 1, whom Kim referred to as "that person" in the recordings. Verification of the so-called "50 Billion Club," which allegedly promised 5 billion KRW each to seven people, is also inevitable. Additionally, they will examine whether part of the 35 billion KRW was delivered to the Seongnam City Council. The flow of funds related to Cheonhwa Dongin No. 4, which lawyer Nam is the actual owner of, is also under investigation. Cheonhwa Dongin No. 4 invested 87.21 million KRW in Seongnam Eutteul and received dividends of 100.7 billion KRW. Subsequently, 23 billion KRW was spent solely on administrative expenses, and there are indications that a building worth over 30 billion KRW was purchased in Gangnam, Seoul.

The investigation team is expected to decide whether to reapply for an arrest warrant for Kim after questioning lawyer Nam. The ongoing account tracing investigation prior to the warrant application for Kim is expected to take about a month due to manpower shortages and other factors. Facing difficulties in securing physical evidence, the investigation team is in urgent need of Nam’s testimony to bolster the credibility of the recordings, especially since Kim’s arrest warrant was previously rejected once. Given that the detention period for Nam is 48 hours, the team is expected to file for an arrest warrant by late afternoon the following day at the latest.

The investigation team is also likely to conduct a parallel investigation into the construction project of multi-family housing in Wirye New Town involving lawyer Nam. Nam worked on the Wirye New Town development project together with Jung Jae-chang, the major shareholder and private business operator of Wirye Asset Management. This project reportedly has a profit scale similar to the Daejang-dong development, around 15 billion KRW. Nam’s wife, Jung, is registered as an inside director of Wirye Asset Management and the investment company. Earlier, when the investigation team requested an arrest warrant for former head Yoo, they included allegations that Yoo received 300 million KRW from Jung. The team plans to indict Yoo, whose detention period expires on the 20th.