[Kim Man-bae Gate Prehistory]③ Legal Reporter Above Water, Lobbyist Below Water

Editor's NoteKim Man-bae (58) is the 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 started 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 live a double life as a current journalist and a real estate developer managing billions of won? To answer this question, we investigated Kim Man-bae’s activities before entering the development business and his actions leading up to taking over the Daejang-dong project rights.

Kim Man-bae, the central figure in the Daejang-dong development project corruption allegations, was known among legal reporters as a “good-natured older brother.” A reporter from a major central daily who covered the legal beat at the same time recalled that whenever Kim encountered junior reporters in the press room, he would look at them and greet them with a simple “Have you eaten?” He was also said to have good manners. However, in reality, he was a “swan on the lake.” On the surface, he won the favor of fellow reporters and high-ranking judges and prosecutors with his friendly demeanor and thick wallet, but beneath the surface, he was tirelessly paddling his webbed feet, chasing massive interests and building a “Daejang-dong protection network.”

Kim Man-bae built his lobbying power horizontally by cultivating friendships with legal reporters and vertically by networking with senior prosecutors and court officials. It was also revealed that he engaged in large financial transactions with senior reporters from major media outlets such as JoongAng Ilbo, Hankook Ilbo, and Hankyoreh. The three reporters who received large sums of money from Kim were all former legal reporters who began interacting with him during their legal beat assignments and maintained close ties for a long time.

Asia Economy compiled an objective account based on facts and testimonies of Kim Man-bae’s activities from when he first appeared in Seocho-dong, Seoul?where the courts and prosecution offices are located?in 2004, until he began full-fledged lobbying activities for Daejang-dong in 2016.

Kim Man-bae’s Transformation into a Legal Reporter (2004?2007)

It has been confirmed that Money Today, Kim Man-bae’s affiliated media company, first established its legal team in June 2004. At that time, Money Today hired four experienced reporters from Newsis all at once to form the legal team in accordance with the requirements for access to the legal reporters’ press room. Kim Man-bae joined Money Today as the deputy head of the legal team. Hong Seon-geun, then editor-in-chief of Money Today, explained in an interview with Media Today the background for establishing the legal team: “In the economic sector, disputes between parties are significant, and without legal coverage, the story often breaks off abruptly, making it difficult to present the full picture to readers. To cover economics properly, it was necessary to strengthen legal coverage. We aimed to provide specialized legal news with a focus on economic issues such as bankruptcy, reflecting Money Today’s unique character.”

The legal reporters’ group is known for its high entry barriers for newly established media outlets. Even if a media outlet gains access to the press rooms of the Supreme Prosecutors’ Office, district prosecutors’ offices, and district courts?which is considered the first hurdle?it must first cover the Seoul District Court, Seoul District Prosecutors’ Office, and Supreme Prosecutors’ Office for a certain period before undergoing a voting process to join the Supreme Court reporters’ group. Money Today, where Kim Man-bae worked, also found it difficult to gain entry to the Supreme Court reporters’ group.

Money Today, which joined the legal reporters’ group in 2006, attempted to join the Supreme Court reporters’ group in 2007 but failed. In 2008, during the Supreme Court reporters’ group voting, Money Today and a broadcasting company (referred to as Company A) voted together. Company A passed by meeting the required quorum, but Money Today failed. A reporter (B) who covered the legal beat at the time recalled, “Kim Man-bae strongly protested the voting results. The senior reporter from Company A who passed alone felt embarrassed and apologized, then earnestly requested the reporters’ group to hold another vote, saying ‘Our position is difficult; could you please vote again?’ The request was accepted, and in the re-vote, Money Today passed and joined the reporters’ group alongside Company A.” Since then, Money Today steadily increased its legal team members and strengthened its presence in Seocho-dong. Typically, economic newspapers form teams of 3 to 4 reporters, or at most 5, but under Kim Man-bae’s leadership, Money Today assigned at least 6, sometimes 8 to 9 reporters, providing ample manpower.

“Always 2 Million Won in His Wallet” When Did His Spending Increase? (2008?2012)

Kim Man-bae, major shareholder of Hwacheon Daeyu Asset Management.
Photo by Heo Young-han younghan@

As mentioned in the first part of our series “The Prehistory of the Kim Man-bae Gate,” Kim Man-bae, who took charge of the legal team from the moment he moved to Seocho-dong, did not write many articles himself. Except for a few signed columns, most articles were co-written with junior reporters on the legal team. Although there are differences among media outlets, it is presumed that since he had sufficient team members, there was little need for Kim Man-bae, as team leader, to write articles himself. Instead, he likely provided article sources to juniors through so-called “high-level reporting” based on his long-standing connections with judges and prosecutors, and assigned articles to be written. Nevertheless, many reporters doubted his reporting and writing abilities.

At least in terms of financial support for juniors, Kim Man-bae was much more proactive than other team leaders at different media outlets. Stories abound of him taking juniors to expensive buffets for team dinners and generously giving them taxi fare afterward. Sometimes, he gave juniors up to 100,000 won in taxi fare to travel to places like Gyeonggi Province or other outskirts of Seoul after dinners. Notably, he reportedly rented an officetel near Seocho-dong at his own expense to provide a comfortable resting place for junior reporters during their coverage.

Another anecdote illustrating his spending habits comes from D, who covered the Seoul District Prosecutors’ Office for Broadcasting Company C around 2009?2010. On a day when Kim Man-bae appeared on Company C’s morning program, D met him afterward and expressed thanks. Kim then asked D for a ride to Seocho-dong. While riding together, D offered to treat Kim to a meal later, to which Kim replied, “If we eat, I should pay. I wouldn’t accept a free meal from you. I have a lot of money,” showing his wallet. The wallet was so thick it barely closed. Surprised, D asked, “Are those 1,000 won bills, sir?” Kim opened the wallet to reveal one 1 million won check, several 100,000 won checks, and many new 50,000 won bills. D recalled, “I remember Man-bae saying he always carried about 2 million won in his pocket.”

However, it seems Kim Man-bae was not financially well-off from the start. Around 2009, rumors circulated in Seocho-dong that “Kim Man-bae inherited land worth about 20 billion won from his father,” or “He has so much money at home that journalism is just a hobby.” Many believed these rumors.

Yet, testimonies indicate that even into the early 2010s, Kim borrowed money from acquaintances several times, ranging from tens of thousands to hundreds of thousands of won, and repaid them. Some witnesses felt he deliberately avoided paying for meals he was supposed to cover. Additionally, some PR executives from large corporations helped Kim manage his network by providing him with information on owner-related legal trends in exchange for meals, which Kim would pay for and later be reimbursed.

Kim Man-bae began spending his own money generously without relying on others after joining the Daejang-dong faction led by lawyer Nam Wook in earnest in 2014. It is presumed that Kim gained financial leeway from the Daejang-dong project funds. According to a close acquaintance of Nam Wook familiar with the Daejang-dong story and the indictment by the Seoul Central District Prosecutors’ Office regarding Kim Man-bae’s violation of the Conflict of Interest Prevention Act, the situation was as follows.

Nam Wook, the original architect of the Daejang-dong project, had set up the stage to make a large profit but had little personal connection with Lee Jae-myung, the mayor of Seongnam and the licensing authority. In 2014, Nam Wook invited Kim Man-bae, whom he had known for several years, to join the Daejang-dong project. At that time, Kim was unfamiliar with real estate development and was initially deployed as a “lobbyist for Lee Jae-myung.” His official job remained as the legal team leader at Money Today.

In August of that year, Kim Man-bae requested Yoo Dong-gyu, then a close aide to Mayor Lee Jae-myung, to have the Seopangyo Tunnel?originally a private project in Daejang-dong?constructed with Seongnam city funds. The Seopangyo Tunnel is a key part of the Daejang-dong road network. A month later, Mayor Lee instructed at a mid-term report meeting on the Daejang-dong project to exclude this tunnel from the private project and proceed with it using the city budget. Removing the tunnel significantly reduced the direct and indirect project costs for Daejang-dong. Naturally, reducing the required project expenses made it easier to attract external investment. Kim Man-bae’s Hwacheon Daeyu borrowed 29.1 billion won from an investment advisory firm in 2015.

From Legal Reporter to Lobbyist (After 2012)

As Kim Man-bae’s tenure as legal team leader lengthened, his network within the courts and prosecution offices gradually expanded. Other reporters covering the legal beat at the time recalled that although Kim did not write many articles, he frequently appeared at the Supreme Prosecutors’ Office, Seoul Central District Prosecutors’ Office, and Seoul Central District Court. At the time, everyone thought Kim was diligently visiting to encourage junior team members or discuss work-related matters. However, in retrospect after the Daejang-dong scandal broke, many suspect that many of these visits were actually to meet prosecutors or judges.

After the scandal erupted, a former high-ranking prosecutor turned lawyer said, “When Kim Soo-nam was the head of the Seoul Central District Prosecutors’ Office in 2014, Kim Man-bae told me to let him know if I ever needed a favor with personnel matters. At the time, it sounded absurd, so I ignored it, but now I think he really could have influenced personnel decisions.”

Legal reporter E recalled, “I once had a meal and coffee with Chief Judge F. He laughed and said, ‘This is only the second time I’ve been treated by a reporter.’ When I asked who paid, he didn’t answer, so I asked, ‘Was it Man-bae?’ He said yes. I then said, ‘If Man-bae paid, it must have been a big treat. I only bought coffee, but he’s rich.’ He replied, ‘He bought the meal.’” E added, “I also heard that Kim Man-bae sometimes bought drinks or arranged golf outings for judges and prosecutors. When they hesitated to attend because they were unsure who would pay, Kim reassured them, saying, ‘I’m paying, so don’t worry,’ ‘No one will blame you for being treated by a reporter,’ and ‘I don’t stingily make companies pay instead.’”

Kim Man-bae reportedly made drinks like bomb shots at gatherings but rarely drank himself. Sometimes he had health reasons to avoid alcohol, but fundamentally, he did not create drinking occasions to drink but to gather information, a legal insider who knew him explained. This person said:

“Kim Man-bae’s essence is that of a lobbyist. Not only Kim but all lobbyists don’t drink even if they go to room salons. They have to remember every word from start to finish without missing anything. How could they drink and risk losing their memory?”

Supreme Court, Seocho-dong, Seoul,

His position in the Supreme Court press room gradually strengthened. Money Today established the news agency News1 in 2011 and acquired the private news agency Newsis in 2014. Around the end of 2015, when cable news channels including JTBC joined the Supreme Court reporters’ group following the “Choi Soon-sil (later renamed Choi Seo-won) state manipulation” scandal, News1 and Newsis also passed the voting to join the Supreme Court reporters’ group. News1, a newly established agency, and Newsis, which had failed to enter the Supreme Court reporters’ group for over a decade, both gained access.

Kim Man-bae, who sought to increase his influence within the legal reporters’ group, approached influential reporters from major media outlets whom he thought might help him someday, especially those who were not exclusive toward him. He valued his friendship with reporter Bae (then legal team leader at a broadcasting company), who served as secretary of the Supreme Court reporters’ group for a long time. In 2019, Kim brought Bae to Money Today, handing over the legal team leader position and moving to a senior social affairs reporter (deputy bureau chief-level). Bae later appeared as the owner of “Cheonhwa Dongin No. 7” in the Daejang-dong scandal.

Kim Man-bae, the major shareholder of Hwacheon Daeyu Asset Management, heading to the courtroom to attend the warrant hearing held on the 17th of last month at the Seoul Central District Court in Seocho-dong, Seoul.
[Image source=Yonhap News]

However, among the 42 media outlets registered with the legal reporters’ group (as of February this year), only a few reporters were close to Kim Man-bae. Several reporters kept their distance because of Kim’s “un-journalistic behavior.”

Reporter G was one of them. Assigned as legal team leader at a major political daily, G covered the Supreme Court at the same time as Kim Man-bae. G recalled:

“On the day I was assigned as legal team leader and went to the press room, Kim Man-bae introduced himself first and invited me to lunch. We had a simple lunch near the Supreme Court. He was a typical veteran local reporter with many connections but didn’t write many articles.”

G remembered Kim buying lunch twice, but that was all; he never received further invitations for meals, drinks, or golf. G said, “I think Kim realized his ‘smooth talk’ didn’t work on me.” G added, “Later, I heard from other reporters that Kim invited me because I was a powerful political reporter with connections and a Seoul National University graduate. Over time, I saw that Kim didn’t bother with people who weren’t ‘nutritious.’”

Kim Man-bae graduated from Sungkyunkwan University, while other core members of the Daejang-dong faction like Nam Wook attended Sogang University, and Lee Jae-myung graduated from Chung-Ang University. None of them are from the so-called SKY elite universities. G said, “In Korean society, their networks alone cannot manage and protect mega-projects like Daejang-dong. Kim Man-bae must have approached top legal figures from Seoul National University like Kwon Soon-il and Park Young-soo for a reason. Among the Daejang-dong group, Kim was responsible for penetrating the Seoul National University legal circle.”

While posing as a good-natured, generous journalist with many connections, Kim Man-bae also lent tens of millions of won to three other legal reporters from different media outlets who were in urgent need of money. All three borrowers were also Seoul National University graduates working for major newspapers.

Another anecdote revealing Kim Man-bae’s darker side involves his time at Newsis. When he left the company after working as a Suwon correspondent, he was owed some investment returns and unpaid wages. When the payments were delayed, Kim, knowledgeable about legal action, filed a lawsuit against the company and applied for provisional seizure of Newsis reporters’ laptops. H, then national bureau chief at Newsis, confronted Kim, saying, “Are you still a senior? How can you seize laptops essential for juniors’ work?” and even got into a physical altercation with him.

Later, when H moved to another company and a junior from that company’s legal team asked Kim to help with joining the Supreme Court reporters’ group, Kim reportedly said, “Why did you have to go there? As long as you’re there, I can’t help you.” The legal team of that company later failed to join the Supreme Court reporters’ group during Kim’s tenure in the press room. This episode shows Kim Man-bae’s thoroughness regarding conflicts of interest and personal relationships.

Revealed as the Mastermind of the Daejang-dong Gate

View of the Pangyo-Daegjang Urban Development Area in Seongnam-si, Gyeonggi-do.

Starting as a native of Suwon, graduating from university in Seoul, and using his profession as a legal reporter, Kim Man-bae meticulously wove a dense web of personal networks. The result of this long-term accumulation was the fortress of enormous wealth known as Daejang-dong. And he became the lord of it.

The prosecution investigation and recordings by Jung Young-hak have increasingly confirmed that Kim Man-bae is the mastermind behind the Daejang-dong gate. It is also becoming more likely that Lee Jae-myung was used in the licensing part of Kim Man-bae’s Daejang-dong design.

Kim Man-bae must insist that the Daejang-dong development shares belong to him, while Lee Jae-myung must claim he was not involved at all and that the hidden 42.8 billion won stake is not his. Only then can they reach a mutually beneficial conclusion. Ultimately, the only person to reap the final economic benefits in this game is Kim Man-bae, while Lee Jae-myung, even if cleared of charges, will be left battered and wounded. This image overlaps with the character Verbal Kint from the movie The Usual Suspects.

The 1995 film The Usual Suspects is one of the greatest twist films in cinema history. The mysterious figure Kaiser Soze orchestrates all crimes, controls everything from behind the scenes, monopolizes tens of millions of dollars in criminal proceeds, and disappears quietly. The film ends by revealing that Kaiser Soze is not the feared crime boss the audience focused on but the least likely member of the group, the talkative Verbal Kint. In the Daejang-dong gate, Kim Man-bae is the Verbal Kint.

Special Investigation Team