Prosecutors Reinvestigate Kim Man-bae After 23 Days... Questioning Use of Daejang-dong Dividend Funds (Comprehensive)

Kim Man-bae [Image source=Yonhap News]

[Asia Economy Reporter Kim Hyung-min] The prosecution resumed its investigation on the morning of the 6th by summoning Kim Man-bae, the major shareholder of Hwacheon Daeyu Asset Management (Hwacheon Daeyu), a private developer of the Daejang-dong project. This comes 23 days after the investigation was halted due to his attempted suicide on the 14th of last month.

The Anti-Corruption Investigation Division 3 of the Seoul Central District Prosecutors' Office (Chief Prosecutor Kang Baek-shin), which is investigating the 'Daejang-dong development project corruption' case, is expected to verify the use of funds, including whether the dividends from the Daejang-dong development were delivered to Lee Jae-myung, leader of the Democratic Party of Korea, as election funds or under other names.

In particular, they plan to focus on whether there is a hidden share promised to Lee’s side in Cheonhwa-dongin No. 1. Cheonhwa-dongin No. 1, a private business entity in Daejang-dong, is a fund that effectively owns 100% of Hwacheon Daeyu’s shares, making it the actual owner.

Based on the testimonies of former Seongnam Urban Development Corporation director Yoo Dong-gyu and private businessmen Nam Wook and Jung Young-hak, the prosecution believes that Kim promised to deliver 42.8 billion KRW of profits to Lee’s side, including Jeong Jin-sang, former director of political coordination at the Democratic Party leader’s office, Kim Yong, former deputy director of the Democratic Research Institute, and former director Yoo.

Kim maintains that this was merely a 'consolation' and that he never intended to actually give the money, insisting that he is the true owner of Cheonhwa-dongin No. 1.

The prosecution also plans to question the whereabouts of the remaining dividends from the Daejang-dong development, including 27.5 billion KRW in dividends that Kim allegedly instructed his associates to conceal.

Among this 27.5 billion KRW, the prosecution recently seized 14.8 billion KRW hidden in checks and has frozen assets totaling approximately 100 billion KRW obtained by private developers of the Daejang-dong project so far. Kim attempted suicide in his car parked on a road in Suwon, Gyeonggi Province on the 14th of last month, was treated in hospital, and was recently discharged. After confirming his health status through various channels, the prosecution judged that he has recovered to some extent and resumed the summons and investigation on this day.