[Kim Man-bae Gate Prequel] ② Appearing as a Lobbyist and Transforming into a Construction Contractor

Editor's NoteKim Man-bae (58) is at the very core of the Daejang-dong scandal. The prosecution, courts, and political circles are all paying close attention to his words. Kim Man-bae's official profession was a journalist. He began his career as a reporter in 1992 and was working as a deputy bureau chief-level reporter at an economic newspaper when the Daejang-dong scandal broke out. How was Kim Man-bae able to lead a double life as a real estate developer handling billions of won while still working as an active journalist? To answer this question, we investigated Kim Man-bae's activities before entering the development business and up until he got involved in the Daejang-dong project rights.

Kim Man-bae Emerges as the Daejang-dong Troubleshooter

It is said that Kim Man-bae had a strong interest in real estate even when he worked at the Newsis Metropolitan Headquarters. However, a common testimony from those around him was that he did not have money to invest. The same was true when Kim Man-bae had just joined the Money Today legal team as its chief in Seocho-dong. His lifestyle was reportedly no different from when he lived in Suwon. The prevailing view is that he neither had a strong presence nor was extravagant in spending.

Kim Man-bae is said to have changed starting from the mid to late 2000s, around the time when the Imok-ri area, where his family home was located, began to be developed. People around him say that his family received substantial compensation from the development projects at that time. A high school classmate of Kim Man-bae said, "As the family received compensation, Kim Man-bae also became interested in real estate development projects." In the Suwon area, after the compensation, his family reinvested in commercial properties and reportedly made a large profit due to the 'real estate boom.' It is also known that Kim Man-bae's spending increased around this time.

Kim Man-bae is also known to have invested in real estate after receiving compensation, but the scale of this investment has not been confirmed. There are only unclear rumors in the region, such as "Kim Man-bae's older brother made money through good investments, while Kim Man-bae failed in his investments." Regardless of whether he invested in real estate, his financial backing allowed Kim Man-bae to maximize his unique sociability in Seocho-dong. His personality was bold, and his generosity was described as 'open-hearted,' which naturally attracted people around him. It seems that it was during this time that he formed a connection with Bae Seong-jun, a former YTN reporter (later chief of the Money Today legal team), who became the owner of Cheonhwa-dongin No. 7, a subsidiary of Hwacheon Daeyu.

Kim Man-bae's entry into the Daejang-dong development project was also triggered by his connection with former reporter Bae. Around 2010, Bae introduced Kim to lawyer Nam Wook, who was organizing the Daejang-dong project. At that time, Nam was conducting so-called 'landowner operations' and developing the project. However, when Lee Jae-myung, the then leader of the Democratic Party of Korea, was elected mayor of Seongnam in 2010, Nam faced difficulties. Mayor Lee declared that all large-scale development projects in the jurisdiction would be pursued as public developments. Moreover, Nam was under investigation by the prosecution for violations of the Attorney-at-Law Act and the Act on the Aggravated Punishment of Specific Crimes, including Money Laundering. Facing the progressing prosecution investigation and the development project, Nam needed someone with power beyond his own capabilities, which led to Kim Man-bae being recruited as the 'troubleshooter.'

In the early stages of the Daejang-dong project, Kim Man-bae appeared not as a developer but as a lobbyist. This is evident in the recorded conversations of accountant Jung Young-hak. Kim referred to himself as the 'Daejang-dong lobbyist' during calls with Jung. The investigative authorities believe that after Kim's involvement in Daejang-dong, he targeted former Seongnam City Council Chairman Choi Yoon-gil as the first lobbying target to push through Nam's requests. At that time, Choi, a member of the Saenuri Party, had lost the party's internal election for the chairmanship in 2012 but, having served three terms as a council member, was eager to become chairman and ran for the position ignoring the primary results, according to investigators.

The prosecution believes Kim Man-bae used the 'school ties' card against Choi. Through Yoon Chang-geun, the Democratic Party representative in the Seongnam City Council and a fellow alumnus of Sungkyunkwan University, Democratic Party council members were allegedly mobilized to support Choi. According to Choi's arrest warrant issued by the police early last year, Kim Man-bae proposed, "If you become chairman, I will provide the chairmanship and ask you to help pass the ordinance to establish the Seongnam Urban Development Corporation." Choi became chairman, and in February 2013, the ordinance to establish the corporation was passed.

It is also said that around this time Kim Man-bae was introduced to Yoo Dong-gyu, who worked at the Seongnam Facilities Management Corporation. Yoo was recruited as the head of planning when the corporation was launched and contributed to selecting the private business consortium, including Hwacheon Daeyu and Hana Bank, and designing the shareholder structure of the special purpose company (SPC) 'Seongnam's Garden.' This laid the groundwork for private businesses to design profit distribution and secure billions of won.

Transformation into a Developer... Controlling Networks

Kim Man-bae officially became a developer in February 2015 by establishing an asset management company named 'Hwacheon Daeyu,' a previously unfamiliar name. Multiple sources say that after lawyer Nam was arrested and indicted in June of the same year for violating the Attorney-at-Law Act, Kim took the lead in the Daejang-dong project.

After establishing Hwacheon Daeyu, Kim Man-bae strengthened relationships with the network he had built through his unique sociability. A representative example is the son of former lawmaker Kwak Sang-do. Kwak's son, who joined Hwacheon Daeyu in its first year, later received 5 billion won in severance pay and performance bonuses. On the 8th of last month, the first trial ruled that this 5 billion won could not be considered a bribe. Although the amount is unusually large by social standards, it was deemed not to have been given in exchange for favors. In 2016, former special prosecutor Park Young-soo joined Hwacheon Daeyu as a standing advisor, and his daughter was employed as an accountant. Park later left the company after being appointed special prosecutor for the 'Choi Soon-sil Gate,' but his daughter remained and was able to purchase an apartment in Daejang-dong at half the market price from the company.

People Kim Man-bae met during his time as a legal reporter also appeared at Hwacheon Daeyu with their own connections. Former Supreme Court Justice Kwon Soon-il, who became an advisor to Hwacheon Daeyu shortly after retiring in October 2020, is included here. About two months before his retirement, the Supreme Court's full bench cast the deciding vote to send back the case of Lee Jae-myung, then governor of Gyeonggi Province, on charges of violating the Public Official Election Act with a not guilty verdict. Kim Man-bae visited Kwon's office at least eight times around the time of this ruling. The sequence of events leading to the not guilty verdict and Kwon's appointment as an advisor sparked suspicions of 'judicial trading' and is considered one of the connections between the Daejang-dong scandal and Lee Jae-myung, leader of the Democratic Party of Korea.

Former Prosecutor General Kim Soo-nam signed a legal advisory contract with Hwacheon Daeyu through a law firm in 2019. Kim had led the bribery investigation of former Seongnam City Council Chairman Choi Yoon-gil in 2012 when he was the head of the Suwon District Prosecutors' Office. There is testimony from lawyer Nam that Kim Man-bae requested this, and indeed, Choi was cleared of charges by the Suwon District Prosecutors' Office Seongnam branch at the end of that year. In a recorded conversation from August 2012, Kim Man-bae is heard saying he was going to meet Yoon Gap-geun, then head of the Seongnam branch.

Former Suwon District Prosecutors' Office Chief Kang Chan-woo also provided legal advice from 2018 to 2020 after retiring as a prosecutor. During this period, Kang was part of the defense team for Lee Jae-myung, then governor of Gyeonggi Province, in a case involving the forced hospitalization of Lee's older brother and violations of the Public Official Election Act. Kang also led the prosecution of the Daejang-dong lobbying case in which lawyer Nam was arrested and indicted in 2015.

Kim Man-bae did not forget his school ties. Former Future Korea Party leader Won Yoo-chul, a senior from Suseong High School, served as an advisor to Hwacheon Daeyu for about a year starting in 2020. Won's wife was also listed as an advisor and received a salary without active duties. Others who appeared as representatives or directors of Hwacheon Daeyu include Lee Seong-moon, who was listed as the company's representative, and Lee Han-sung, a former aide to former lawmaker Lee Hwa-young, a close associate of Lee Jae-myung, who served as an inside director of Cheonhwa-dongin No. 1. All are alumni of Sungkyunkwan University and connected to Kim Man-bae.

Kim Man-bae, the major shareholder of Hwacheon Daeyu Asset Management, who was indicted on charges of bribery, is attending the first trial sentencing hearing related to the Daejang-dong development project lobbying and preferential treatment allegations at the Seoul Central District Court in Seocho-gu on the afternoon of the 8th. Photo by Kang Jin-hyung aymsdream@

Kim Man-bae's Network Tightened One by One

The prosecution investigating corruption in the Daejang-dong development project is tightening the noose around Kim Man-bae's network on all fronts. Starting with lawyer Nam and accountant Jung, they have successively brought former lawmaker Kwak Sang-do, Lee Han-sung, and others close to Kim to trial, putting pressure on Kim Man-bae. The apparent goal is to recover the enormous profits Kim Man-bae gained through breach of trust in Daejang-dong. Hwacheon Daeyu, where Kim is the major shareholder, received 57.7 billion won in dividends from the Daejang-dong project. Cheonhwa-dongin No. 1, wholly owned by Hwacheon Daeyu, received 120.8 billion won in dividends, and Cheonhwa-dongin Nos. 2 and 3, represented by Kim's family, received 10.1 billion won each. Kim Man-bae's side secured profits amounting to 200 billion won. Even excluding the dividends of Cheonhwa-dongin No. 1, which has been subject to controversy over its real owner, the amount is enormous.

After completing the main investigation into corruption in the Daejang-dong project, the prosecution plans to clarify the substance of allegations such as the so-called '50 Billion Won Promise Club.' The '50 Billion Club' mentioned in Jung Young-hak's recordings includes six figures: former special prosecutor Park Young-soo, former lawmaker Kwak Sang-do, former Prosecutor General Kim Soo-nam, former Blue House civil affairs secretary Choi Jae-kyung, former Supreme Court Justice Kwon Soon-il, and Hong Seon-geun, chairman of the Money Today Media Group. The recordings also mention other current and former legal professionals, mostly those who worked in Suwon or Seongnam. The prosecution is reportedly continuing investigations related to Kwak Sang-do's 5 billion won bribery charges separately from the first trial court's acquittal.

Whether Kim Man-bae will break under the prosecution's pressure tactics remains uncertain. He may face additional charges such as bribery or illegal political funding, and many of his close acquaintances who form the web around him could become targets for prosecution. Analysts suggest that Kim might choose to preserve his most valuable asset?his network?considering social rehabilitation after release.

However, the psychological impact is clear. In December last year, when his close associates?Hwacheon Daeyu co-representative Lee Han-sung and former Ssangyong Group vice chairman and Hwacheon Daeyu director Choi Woo-hyang?were arrested, Kim Man-bae attempted suicide. After treatment, he appeared at the Daejang-dong trial on the 13th of last month and said, "I attempted an extreme act because I felt innocent people around me were suffering due to me."

The investigation into Lee Jae-myung, leader of the Democratic Party of Korea and classified as another axis of the Daejang-dong scandal, is reaching its peak. After lawyer Nam, who initially led the project, was arrested in May 2015, Kim Man-bae built relationships with Yoo Dong-gyu, former head of planning at Seongnam Urban Development Corporation, and others, taking control of the project. Many individuals connected to Kim have already been indicted, including Yoo, former Democratic Party chief of staff Jeong Jin-sang, and former Democratic Research Institute deputy director Kim Yong.

On the 28th of last month, the prosecution summoned Lee Jae-myung as a suspect in the preferential treatment allegations related to the Daejang-dong development project. The prosecution investigated Lee regarding allegations that his close aides, including former chief of staff Jeong Jin-sang, promised Kim Man-bae 42.8 billion won from Daejang-dong profits, and that former Democratic Research Institute director Kim Yong received 847 million won from lawyer Nam during the 2021 Democratic Party presidential primary. The prosecution is considering requesting an arrest warrant for Lee. Unlike lawyer Nam and former planning chief Yoo Dong-gyu, who have made disclosures targeting Lee, Kim Man-bae has remained silent about Lee's alleged involvement.

Special Investigation Team