Kim Man-bae, the major shareholder of Hwacheon Daeyu Asset Management, is attending a trial related to lobbying and preferential treatment allegations in the Daejang-dong development project, held on December 9 last year at the Seoul Central District Court.
[Asia Economy Reporter Kim Daehyun] Kim Man-bae, the major shareholder of Hwacheon Daeyu Asset Management who recovered his health after a suicide attempt, said in the resumed trial of the 'Daejang-dong Development Embezzlement Allegation' case, which restarted after about a month, "I made an extreme choice because I felt that innocent people around me were put in difficult situations because of me. I will now compose my emotions and (diligently) participate in the judicial process."
On the morning of the 13th, Kim said at the continuation hearing held at the Seoul Central District Court Criminal Division 22 (Presiding Judge Lee Joon-cheol) that "I sincerely apologize for the disruption in the trial schedule caused by me."
Earlier, on the 14th of last month, Kim attempted self-harm under the burden of his close aides being consecutively arrested on charges of concealing criminal proceeds and received hospital treatment. The trial, postponed for Kim’s recovery, resumed on this day after about a month.
Kim, a private developer of Daejang-dong, is accused of conspiring with former Seongnam Urban Development Corporation Planning Director Yoo Dong-gyu to funnel at least 65.1 billion KRW in profits to private companies, causing equivalent losses to the corporation (breach of trust under the Specific Economic Crimes Act). Yoo, former Strategic Business Director Jeong Min-yong, Cheonhwa Dongin No.4 owner Nam Wook, and Cheonhwa Dongin No.5 owner Jeong Young-hak were also indicted together.
On this day, the prosecutor requested, "Please consolidate the case with the additional indictment for violation of the Conflict of Interest Prevention Act." He added, "All five defendants are the same, and the timing and main facts of the crimes are all related, so we applied for consolidation together." The presiding judge replied, "We will review the purpose of the additional indictment and then decide on consolidation," and then began the witness examination of former Director Jeong.
The day before, the Anti-Corruption Investigation Division 3 of the Seoul Central District Prosecutors' Office (Chief Prosecutor Kang Baek-shin) additionally indicted them, judging that during the period from August 2014 to March 2015, in the process of promoting the Daejang-dong development project, they used internal secrets of Seongnam City and Seongnam Urban Development Corporation?such as the development project method, public offering guidelines, and the plan to open the Seopan-gyo Tunnel?to have the 'Seongnam Utddeul Consortium' created by Kim and others selected as the private business operator.
The prosecution viewed that from March 2019 to the present, approximately 788.6 billion KRW in total?including about 405.4 billion KRW in land sale profits under the names of Hwacheon Daeyu and Cheonhwa Dongin Nos. 1 to 7, about 369 billion KRW in apartment sale profits, and about 14 billion KRW in asset management commission fees?was acquired by them or third parties during this process.
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