Prosecutors Complete 14-Hour Investigation of Hwacheon Daeyu Major Shareholder Kim Man-bae, Then Release Him... Kim Says "I Provided Sincere Explanations"

Kim Man-bae, the major shareholder of Hwacheon Daeyu and a key figure in the Daejang-dong development lobbying and preferential treatment allegations, is leaving the Seoul Central District Prosecutors' Office in Seocho-gu on the morning of the 12th after completing his summons investigation as a suspect.
[Image source=Yonhap News]

[Asia Economy Reporter Choi Seok-jin, Legal Affairs Specialist] Kim Man-bae, the major shareholder of Hwacheon Daeyu and a key figure in the 'Daejang-dong Development Project Favoritism' allegations, was released after a 14-hour investigation and returned home in the early hours of the 12th.

The dedicated investigation team at the Seoul Central District Prosecutors' Office summoned Kim in the morning at 10 a.m. the previous day for questioning as a suspect. Although the exact end time of the investigation was not confirmed, Kim finished the questioning, reviewed the records, and left around 12:28 a.m. that day.

After leaving the prosecution building, Kim told the waiting press, "I sincerely explained everything during the prosecution's investigation."

Regarding the controversy over the true ownership of Hwacheon Daeyu's subsidiary Cheonhwa Dongin No. 1, he reiterated, "Without a doubt, it belongs to Hwacheon Daeyu," adding, "Hwacheon Daeyu is my personal company." When he appeared at the prosecution the previous morning, he also responded to reporters' questions about the owner of Cheonhwa Dongin No. 1 by saying it was himself.

On the remark that "half of the shares of Cheonhwa Dongin No. 1 belong to that person," he explained, "From my perspective, I said that to prevent further conflicts among former business operators from spreading."

He continued, "We did not anticipate this level of profit," adding, "The real estate market suddenly surged, and we earned profits we had not expected."

When asked about accountant Jung Young-hak, the owner of Cheonhwa Dongin No. 5, who recently submitted recorded conversations to the prosecution, Kim said, "I have never had a sincere conversation with Jung Young-hak."

He avoided directly answering whether he had reviewed the recordings. Regarding the 47.3 billion KRW loan from Hwacheon Daeyu, he responded, as before, "It was used for initial operating expenses and to repay borrowed money."

The prosecution appears to have investigated Kim regarding the process of being selected as the developer for the Daejang-dong project, the background that allowed Hwacheon Daeyu and its subsidiary Cheonhwa Dongin major shareholders to gain enormous development profits, and lobbying allegations involving political and government figures, covering all the raised suspicions.

In particular, it is highly likely that priority investigations were conducted into bribery allegations against former Seongnam Urban Development Corporation Planning Director Yoo Dong-gyu, who was arrested for accepting bribes from Kim and others. Recently, the prosecution extended Yoo's detention period by ten days. Since Yoo must be brought to trial before the detention period expires, related investigations are presumed to have taken place.

Bribery evidence against former Director Yoo is reportedly included in the recorded conversations submitted to the prosecution by accountant Jung. Additionally, a 20-page written statement submitted by lawyer Jung Min-yong, who served as the head of the Strategic Business Team at Seongnam Urban Development Corporation, reportedly contains information that the true owner of Cheonhwa Dongin No. 1 is former Director Yoo.

Kim, who stands at the center of these allegations, faces a wide range of issues the prosecution must investigate, including the '50 Billion Club' suspicion, the '35 Billion Lobbying Allegation,' and allegations of trial manipulation involving Gyeonggi Province Governor Lee Jae-myung.

Some speculate that the prosecution might request an arrest warrant for Kim to secure his custody, but it is expected that the prosecution will summon and question Kim several more times before deciding on his detention.

Kim, who appeared at the Seoul Central District Prosecutors' Office in Seocho-gu, Seoul, at around 9:45 a.m. the previous day, claimed, "The various allegations raised are due to deliberately edited recordings," and argued, "The content of the recordings has been exaggerated in the process of profit distribution among investors and is not true."

This implies that the recorded conversations submitted by accountant Jung should not be accepted as factual since the issue arose from internal conflicts over profit distribution and cost burdens.

Kim also stated, "No illegal funds were exchanged," and added, "If the prosecution thoroughly investigates the inflow and outflow of funds, many of the current allegations will be resolved."

Regarding the visits to former Supreme Court Justice Kwon Soon-il and the connection to the Supreme Court ruling on Governor Lee's violation of the Public Official Election Act, Kim rebutted, "Our judiciary is not a place that moves based on the speculations and patchwork assumptions of gossipers," and said, "The trial-related talk is absurd." He explained that his visits to former Justice Kwon were to discuss other acquisition matters.

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