Prosecutors Expected to Refile Kim Man-bae's Arrest Warrant This Week... Impact on 'Two-Track Investigation of Higher-Ups'

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyung-min] The prosecution's investigation into the 'Daejang-dong development preferential treatment and lobbying' allegations, which has lasted over a month, is facing a critical turning point again. It is expected that an arrest warrant will be re-requested for Kim Man-bae, the major shareholder of Hwacheon Daeyu Asset Management.

According to the legal community on the 31st, the special investigation team dedicated to the Daejang-dong allegations plans to file an arrest warrant for Kim with the court within this week. Afterwards, they may also move to secure the custody of other key figures such as lawyer Nam Wook and accountant Jeong Young-hak.

The prosecution suspects that Kim, lawyer Nam, and accountant Jeong, together with former director Yoo, designed the project so that private operators would receive enormous profits, causing the construction side to suffer losses worth several hundred billion won, and in return, promised such profits to former director Yoo.

Kim is also suspected of receiving help from independent lawmaker Kwak Sang-do during the formation of the Hana Bank consortium in which Hwacheon Daeyu participated, and subsequently delivering 5 billion won through Kwak’s son, Kwak Byung-chae.

The key issues in this arrest hearing are accountant Jeong’s recorded statements and Kim’s breach of trust charges. Whether Kim will be detained depends on how much the judge in charge of warrants accepts the prosecution’s claims regarding these matters. Previously, when the first warrant was requested for Kim, the evidentiary value of the recordings was not sufficiently recognized, and the prosecution’s claims regarding breach of trust were reportedly weak, drawing criticism.

If the arrest warrant is issued, the investigation into higher-ups is likely to gain momentum. The prosecution is investigating the allegations in two branches: breach of trust and abuse of authority by figures classified as 'higher-ups.'

The breach of trust mainly concerns the decisions made by those who promoted the Daejang-dong urban development, which caused significant losses to Seongnam City and others. In particular, clarifying the suspicion regarding the deletion of the excess profit recovery clause will provide clues to determine whether there was intent to breach trust.

The prosecution is already conducting a breach of trust investigation against former Seongnam Urban Development Corporation Planning Director Yoo Dong-gyu, who has been indicted on bribery charges, and is also scrutinizing Lee Jae-myung, the Democratic Party presidential candidate who led Seongnam City’s administration during the project.

Regarding abuse of authority, the suspicion of 'forced resignation' of former Seongnam Urban Development Corporation President Hwang Mu-seong is a hot issue. Former President Hwang claims that Seongnam City was behind his resignation before completing his term and has released related recordings. Lee’s camp has denied this, stating, "It is not true."

This allegation is drawing attention because former Development Project Director Yoon Han-gi holds the key. He acted as an intermediary between former President Hwang and candidate Lee.

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