Police Respond to Criticism Over 'Hwacheon Daeyu 5-Month Internal Investigation' by Explaining "Time Needed to Verify Account Data"

Choi Kwan-ho, Commissioner of Seoul Metropolitan Police Agency [Image source=Yonhap News]

[Asia Economy Reporter Jeong Dong-hoon] The police revealed that the investigation into the major shareholder and CEO of Hwacheon Daeyu Asset Management (Hwacheon Daeyu), who are suspected of breach of trust and embezzlement, has not been formally transferred to a full investigation after five months because "it took a long time to analyze the account data received from the Financial Intelligence Unit (FIU)."

On the 27th, Choi Gwan-ho, Commissioner of the Seoul Metropolitan Police Agency, stated at a press conference held in Naejadong, Jongno-gu, Seoul, "It took time to verify the financial account facts related to the suspicions raised by the FIU," adding, "After one related person was investigated, it took time to analyze the explanatory materials submitted three times." He further said that "more investigation seems necessary" regarding the criminal charges.

Earlier, in April, the police received a request from the FIU to verify the flow of funds and account transaction details of Hwacheon Daeyu and assigned the case to the Yongsan Police Station. Subsequently, five members of the Crime Proceeds Tracking Team from the Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency were dispatched to support the investigation. Regarding plans to expand the investigation team, he said, "In principle, it is being handled by Yongsan Police Station," adding, "It will be decided based on the results of this investigation. The possibility is open."

Regarding the current investigation targets related to Hwacheon Daeyu, he stated, "There are three people: Kim Man-bae (the major shareholder), CEO Lee Seong-moon, and the representative of the Cheonhwa Dongin corporation." He also commented on the matter of Gwak Mo, son of independent lawmaker Gwak Sang-do, receiving 5 billion won as severance pay, saying, "We are focusing on verifying suspicious transaction facts provided by the FIU."

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