[Asia Economy Reporter Kim Daehyun] Kim Man-bae, the major shareholder of Hwacheon Daeyu Asset Management (Hwacheon Daeyu), a private developer of Daejang-dong, is once again at a crossroads regarding detention. This is the third time Kim has undergone a pre-detention suspect interrogation (warrant hearing).
Kim Man-bae, the major shareholder of Hwacheon Daeyu Asset Management, is heading to the courtroom on the morning of the 17th at the Seoul Central District Court in Seocho-gu, Seoul, to attend the pre-arrest detention hearing (warrant examination). [Image source=Yonhap News]
At 11 a.m. on the 17th, Judge Kim Jeong-min, in charge of warrants at the Seoul Central District Court, conducted the warrant hearing for Kim. Arriving at the court about 20 minutes before the hearing, Kim did not respond to reporters' questions such as "Do you admit the charges?" or "Did you hide money with the intention of lobbying the 5 billion Club?" and entered the courtroom.
Whether Kim will be detained is expected to be decided later that night or early the next morning. If the warrant is issued, Kim will be imprisoned again after about three months.
According to the prosecution, Kim is suspected of withdrawing 34 billion KRW in criminal proceeds related to the Daejang-dong development project between October 2021 and November 2022 in the form of checks and hiding them in nominee officetels and rented safes.
Following a court's provisional seizure order in December last year, Kim is also accused of instructing his close aide Park to hide physical checks worth approximately 14.2 billion KRW, which are evidence of the crime of concealing criminal proceeds, and of having his close aide Kim and others burn his mobile phone containing evidence of the Daejang-dong case around September 2021.
The prosecution has continued to trace funds based on the possibility that Kim has hidden more assets. There is also suspicion that some of the funds concealed by Kim, who acted as a "lobby channel" during the Daejang-dong project, were used as bribes. There is a possibility that connections to the so-called "5 billion Club" may be revealed.
This is Kim's third warrant hearing. In October 2021, the prosecution requested an arrest warrant for Kim on charges including bribery related to the Daejang-dong development and preferential treatment suspicions, as well as breach of trust and embezzlement under the Specific Economic Crimes Act, but the court dismissed it, stating that "the necessity for detention is not sufficiently demonstrated."
In November of the same year, Kim underwent a second detention hearing after 20 days. The prosecution refiled the warrant request specifying the amount of breach of trust and the method of bribery delivery. The court issued the arrest warrant for Kim, citing "the charges are substantiated and there is a risk of evidence destruction."
Originally, Kim's detention period was set to expire in May last year, but it was extended due to additional indictments, including allegations of giving 5 billion KRW as severance pay to the son of former People Power Party lawmaker Kwak Sang-do.
Kim was released in November last year, one year after his detention. As the prosecution's investigation into his close aides intensified, Kim even attempted an extreme act. The prosecution holds the position that detention is necessary through this warrant request, as similar unexpected situations may occur during the ongoing investigation and there is a high risk of evidence destruction through acquaintances.
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