Prosecutors Re-Arrest Kim Man-bae on Charges Including 'Concealment of Criminal Proceeds'... Court Cites Risk of Evidence Tampering and Flight

Kim Man-bae, the major shareholder of Hwacheon Daeyu, heading to the courtroom to attend the warrant hearing held at the Seoul Central District Court in Seocho-dong, Seoul, on the morning of the 17th.

[Asia Economy Reporter Choi Seok-jin, Legal Affairs Specialist] Kim Man-bae, the major shareholder of Hwacheon Daeyu Asset Management (Hwacheon Daeyu), a private developer of Daejang-dong, was re-arrested on the 18th.

Kim Jeong-min, the judge in charge of the warrant review at the Seoul Central District Court, who handled Kim's detention hearing, stated, "Considering the nature and characteristics of the crime in this case, as well as the relationships between the suspect and related parties, there is a risk of evidence destruction and flight," and issued the arrest warrant requested by the prosecution on charges including concealment of criminal proceeds and instigation of evidence destruction at around 1:40 a.m. on the 18th.

The detention hearing for Kim, which began at 11 a.m. the previous day, ended after about 6 hours and 40 minutes.

When Kim appeared for the warrant hearing, he did not respond to any questions from the press and entered the courtroom. After the hearing, he again remained silent in response to reporters' questions as he left the courthouse.

Kim is suspected of withdrawing 34 billion KRW in criminal proceeds related to the Daejang-dong development project between October 2021 and November 2022 by check, and hiding them in a nominee officetel and a rented safe deposit box.

He is also accused of instructing his close aide Park to hide physical checks worth approximately 14.2 billion KRW, which are evidence of the concealment of criminal proceeds, in preparation for enforcement following the court's provisional seizure order issued in December last year. Additionally, in September 2021, he allegedly had his close aide Kim and others burn his mobile phone containing evidence related to the Daejang-dong case.

The prosecution has continued to track funds based on the possibility that Kim has hidden more assets. They also suspect that some of the funds concealed by Kim, who acted as a 'lobby channel' during the Daejang-dong project, may have been used as bribes. There is also a possibility that connections to the so-called '50 Billion Club' will be revealed.

This was Kim's third detention 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. However, the court dismissed the request, stating that "the necessity for detention was not sufficiently demonstrated."

In November of the same year, the prosecution requested an arrest warrant again, specifying the amount of breach of trust and the method of bribery delivery, and the court issued the warrant, citing that "the criminal 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, after one year of detention. When the prosecution's investigation into his close aides intensified, Kim even attempted an extreme act. The prosecution has maintained that detention is necessary because similar unexpected situations could occur during the investigation and there is a high risk of evidence destruction through acquaintances.

With the prosecution regaining custody of Kim on this day, the investigation into the flow of funds related to Daejang-dong, including concealed profits and the use of withdrawn funds, is expected to gain momentum.

Furthermore, the prosecution's investigation into other members of the '50 Billion Club,' aside from Lee Jae-myung, leader of the Democratic Party, and former People Power Party lawmaker Kwak Sang-do, is also expected to accelerate.