Summons of Kim Man-bae at the Center of Suspicion Imminent... Legal Gate Opens

Expected to Appear Before Prosecutors Next Week
Surrounded by Allegations in Daejang-dong Development
Many Legal Professionals Mentioned
Controversy Over Whether High Advisory Fees Are Quid Pro Quo

[Asia Economy Reporter Seongpil Cho] It was reported on the 7th that Kim Man-bae, the major shareholder of Hwacheon Daeyu, is expected to appear before the prosecution next week for investigation. As Kim, a key figure in the Daejang-dong development preferential treatment allegations, is about to be summoned, the prosecution has begun reviewing the matters to be investigated. So far, the prosecution has focused on the suspicion of 'public corruption' while summoning and investigating the person responsible for the practical work of the Daejang-dong development. With Kim’s summons as a turning point, there is a prospect that the scope of the investigation will expand to include the 'legal gate' allegations.

The dedicated investigation team at the Seoul Central District Prosecutors' Office (led by Deputy Chief Prosecutor Kim Tae-hoon) is reportedly planning to summon Kim as a suspect for questioning. Since there is evidence to directly question Kim based on materials secured through search and seizure and testimonies from related parties, the summons is deemed unavoidable. The investigation team is said to be weighing the timing of Kim’s summons while supplementing and reviewing the contents of the investigation. Regarding the timing, there were initial remarks in the legal community that the prosecution might summon Kim as early as this week. However, since the investigation schedule for this week has already been set, it is known that the plan has been finalized for next week. Kim’s side also stated this morning that "we have not yet received a summons notice from the prosecution."

The prosecution has been summoning and investigating related parties daily since the detention of Yoo Dong-gyu, former Planning Director of Seongnam Urban Development Corporation, on the 3rd. It is reported that they have examined the overall suspicions starting from the period when the development blueprint was being drawn up. The prosecution believes that Kim, the actual owner of Hwacheon Daeyu, requested a favor related to the Daejang-dong project from former Director Yoo in 2015. It is suspected that in October last year, former Director Yoo demanded and was promised about 70 billion KRW, equivalent to 25% of the development profits, and that 500 million KRW was transferred from Kim to former Director Yoo in January this year.

Many legal professionals are involved in the outer layer surrounding these suspicions. The names of former special prosecutor Park Young-soo, former Supreme Court Justice Kwon Soon-il, former Prosecutor General Kim Soo-nam, former Chief Prosecutor Kim Ki-dong, former Suwon District Prosecutor General Kang Chan-woo, and former Deputy Minister of Justice Lee Chang-jae are listed as legal advisors and consultants for Hwacheon Daeyu. Among them, former Special Prosecutor Park’s daughter received an apartment allocated to Hwacheon Daeyu’s share. His daughter also worked at Hwacheon Daeyu alongside the son of former lawmaker Kwak Sang-do. Additionally, former Supreme Court Justice Kwon became the center of controversy due to receiving high advisory fees, and former Suwon District Prosecutor General Kang was the head of the district prosecutor’s office during the Nam Wook lawyer case.

The prosecution is expected to focus on questioning Kim about whether the funds paid to the legal advisory and consulting group were in exchange for favors during the upcoming investigation. The use of advisory fees and the roles of the advisors will also be subjects of scrutiny. In particular, former Supreme Court Justice Kwon, who received a high monthly advisory fee of 15 million KRW, is likely to be closely examined for any connection to the Supreme Court’s decision to remand the case involving Gyeonggi Governor Lee Jae-myung. Depending on the progress of the investigation, the possibility of a series of summonses for legal advisors and consultants cannot be ruled out. Previously, when Kim appeared before the police last month, he referred to this legal advisory group as "brothers I like" and stated, "There was no exchange for favors."

However, in the legal community, the prevailing view is that it will be difficult to apply charges based solely on the suspicions revealed so far. A lawyer in Seocho-dong said, "All corruption, not limited to the legal community, is based on 'exchange for favors.' While it may be morally problematic for legal professionals to receive large advisory and consulting fees through preferential treatment as former officials, it will ultimately be difficult to prosecute them for crimes as legitimate earnings."

This content was produced with the assistance of AI translation services.