Prosecution Adds Charges Against Hwacheondaeyu Major Shareholder Kim Man-bae for Embezzlement of 10 Billion Won

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyung-min] Kim Man-bae, the major shareholder of Hwacheon Daeyu Asset Management (Hwacheon Daeyu), which led the Daejang-dong urban development project, has been additionally indicted on charges of embezzling 10 billion KRW of company funds.

The dedicated investigation team of the Seoul Central District Prosecutors' Office (led by Deputy Chief Prosecutor Kim Tae-hoon) announced on the 16th that Kim was additionally indicted on charges of embezzlement under the Act on the Aggravated Punishment of Specific Economic Crimes.

Kim is accused of personally misappropriating about 10 billion KRW out of the 47.3 billion KRW borrowed by Cheonhwa-dongin No. 1 from Hwacheon Daeyu under the name of long-term loans and delivering it to Lee, the representative of the Daejang-dong sales agency. Lee was in charge of sales agency for the Daejang-dong project from 2014 to 2015 and received 2 billion KRW from Na, the representative of a civil engineering construction company, along with a request for securing the project rights. However, Na ultimately failed to secure the civil engineering project rights and demanded the money back from Lee. It was investigated that Lee received 10 billion KRW from Kim Man-bae and returned it to Na.

Lee is a distant relative of former special prosecutor Park Young-soo. In January 2014, Park served as an outside director for one month at a KOSDAQ-listed company where Lee was CEO. Park’s son worked for another company operated by Lee for three months starting November 2015.