Prosecutors Track Hwacheon Daeyu Accounts... Uncover Large-Scale Lobbying Evidence

Kim Man-bae's Lobbying Circumstances Confirmed Ahead of Summons on the 11th
Police Warrants Rejected, Direct Intervention After Several Days Raises Conflict Concerns

[Image source=Yonhap News]

[Asia Economy Reporter Seongpil Cho] It was reported on the 8th that the prosecution is currently conducting account tracking on Hwacheon Daeyu, the private developer involved in the Daejang-dong development project. This is interpreted as a procedure to verify various lobbying circumstances of Kim Man-bae, the major shareholder of Hwacheon Daeyu, ahead of his summons for investigation. Some view this investigation, which is being conducted just days after the police's rejection of a warrant application for account seizure, as a manifestation of the tug-of-war between the prosecution and police over the Daejang-dong investigation.

The dedicated investigation team of the Seoul Central District Prosecutors' Office (led by Deputy Chief Prosecutor Kim Tae-hoon) began analyzing the recorded transcripts submitted by accountant Jung Young-hak, the owner of Cheonhwa Dongin No. 5, and started tracking accounts related to Hwacheon Daeyu. The transcripts reportedly contain indications that Kim and others used 35 billion won under the pretext of lobbying politicians, legal professionals, and the Seongnam Urban Development Corporation. The investigation team has been focusing on whether lobbying funds were delivered to politicians from both ruling and opposition parties, legal professionals, the Seongnam City Council, and the Seongnam Urban Development Corporation.

Inside and outside the prosecution, this account tracking is seen as an acceleration of the investigation targeting Kim, who is about to be summoned. The investigation team notified Kim on the afternoon of the previous day to appear on the 11th. During the investigation of Kim, the team is expected to intensively question various lobbying circumstances mentioned in the transcripts based on the results of this account tracking. The transcripts also reportedly include content about promising 5 billion won as a performance bonus to the daughter of former special prosecutor Park Young-soo, which could potentially expand the scope of the investigation into a legal gate depending on the results.

The transcripts also reportedly include details that 3 billion won was delivered to the then Seongnam City Council chairman and 2 billion won to a Seongnam city council member. The investigation team places significant weight on the possibility that this money was a bribe given to secure the cooperation of the city council and others, which was essential for the Korea Land and Housing Corporation (LH) to withdraw from the Daejang-dong development project. This raises suspicions that the Daejang-dong scandal could be both a legal gate and a construction corruption case. The investigation team plans to verify this aspect with Kim.

However, in the legal community, concerns are being raised that this account tracking could accelerate conflicts between the prosecution and police over the Daejang-dong investigation. The prosecution previously rejected the police's application for a warrant to seize accounts related to the Daejang-dong allegations, requesting supplementary investigation. At that time, some within the police expressed dissatisfaction, saying that the prosecution was putting a brake on the investigation while the Seoul Central District Prosecutors' Office and the Gyeonggi Southern Police Agency were conducting separate investigations into the Daejang-dong allegations.

It is not known to what extent the contents specified in the police warrant and the scope of the prosecution's current account tracking overlap. A prosecution official said, "We cannot comment as the investigation is ongoing." However, the fact that the prosecution began account tracking directly just days after rejecting the warrant application is said to have further increased dissatisfaction within the police.

A legal community official said, "In the previous 2015 Daejang-dong investigation, the prosecution indicted related parties including lawyer Nam Wook in large numbers, but they were acquitted in court," adding, "From the prosecution's perspective, they may want to make up for the results of that trial through this Daejang-dong investigation." Previously, the Suwon District Prosecutors' Office Special Division arrested and indicted lawyer Nam and others in 2015 on charges of lobbying politicians and officials related to the Daejang-dong development project, but they were acquitted by the court. Both the first and second trial courts indirectly pointed out that the prosecution's investigation was insufficient. Coincidentally, the second trial judge who confirmed lawyer Nam's acquittal was former Board of Audit and Inspection Chairman Choi Jae-hyung, a presidential candidate for the People Power Party.

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