Prosecutors Indict Kim Man-bae and Nam Wook... 'Political Lobbying' Likely to Be Excluded

Wrapping up embezzlement investigation and intensifying probe into 'upper echelons and lobbying'... Special prosecutor theory likely to gain traction amid criticism of negligence and delays

Major shareholder of Hwacheon Daeyu, Kim Man-bae (left), and Nam Wook, lawyer and owner of Cheonhwa Dongin No. 4. /

[Asia Economy Reporter Bae Kyunghwan] Kim Man-bae, the major shareholder of Hwacheon Daeyu and a key figure in the Daejang-dong development preferential treatment allegations, and lawyer Nam Wook, owner of Cheonhwa Dongin No. 4, will be brought to trial. With their indictment, the breach of trust investigation surrounding the Daejang-dong development has come to a close for now, but the determination of higher-ups, including suspicions of lobbying in political circles, remains at a standstill. The so-called '50 Billion Club' allegations are also likely to be excluded from the indictment.

According to the legal community on the 22nd, the Daejang-dong development suspicion task force at the Seoul Central District Prosecutors' Office (led by Deputy Chief Prosecutor Kim Tae-hoon) will indict Kim and lawyer Nam on the day their detention period expires, charging them with breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes.

They are suspected of conspiring with former Seongnam Urban Development Corporation (Seongnam UDC) Planning Director Yoo Dong-gyu, accountant Jung Young-hak, lawyer Jung Min-yong, and others, to funnel dividend profits worth approximately 65.1 billion KRW to Hwacheon Daeyu and Cheonhwa Dongin Nos. 1 to 7, causing losses to Seongnam UDC.

The key issue is whether the investigation team succeeded in specifying the higher-ups or the amount involved in the breach of trust charges. The investigation team stated in Yoo’s indictment and the arrest warrants for Kim and lawyer Nam that the damage to Seongnam UDC was "at least 65.1 billion KRW." Although they suspected the losses inflicted on Seongnam UDC could reach several hundred billion KRW, they failed to secure sufficient evidence to prove the charges. Attention is focused on whether the investigation team can specify the amount of breach of trust in the indictment through additional investigations.

There is also a possibility that accountant Jung, who initially provided recorded conversations to assist the investigation, will be indicted. When Yoo was additionally indicted earlier, the investigation team named accountant Jung and lawyer Jung as accomplices. Notably, lawyer Jung’s arrest warrant was once rejected, but he has since appeared multiple times for questioning by prosecutors.

However, political lobbying suspicions such as the '50 Billion Club' are expected to be excluded from their indictments. Although the investigation team conducted a search and seizure at former National Assembly member Kwak Sang-do’s residence on the 17th and secured evidence, the analysis is still ongoing and no summons have been issued. A prosecution official stated, "Kim, who is detained, repeatedly refused summons questioning, causing setbacks in the investigation," and added, "It is also true that physical time was insufficient due to variables such as COVID-19 infections within the investigation team."

Therefore, the investigation team is expected to first bring the two to trial and then begin a full-scale investigation into the '50 Billion Club.' Key figures related to Hwacheon Daeyu lobbying allegations who have not yet been summoned include former lawmaker Kwak Sang-do, former Supreme Court Justice Kwon Soon-il, and former special prosecutor Park Young-soo.

Since the investigation team has received forensic data from the police on former Planning Director Yoo’s mobile phone, which contains call records with former Seongnam City Policy Officer Jeong Jin-sang (Deputy Secretary of the Democratic Party’s Election Committee), they are likely to verify whether 'Wi-seon' was involved. Currently, the investigation team is probing allegations that former Seongnam UDC President Hwang Mu-seong was pressured to resign, and recently secured text messages exchanged between former President Hwang and Officer Jeong through voluntary submission.

However, due to the sluggish investigation into political lobbying suspicions, calls for the introduction of a special prosecutor are expected to grow louder. The People Power Party has been insisting daily on appointing a special prosecutor, arguing that "normal investigation progress is impossible," and Democratic Party presidential candidate Lee Jae-myung also stated, "It is desirable for the ruling and opposition parties to agree on a special prosecutor at any time without conditions." People Power Party presidential candidate Yoon Seok-youl has also hinted at accepting a separate special prosecutor investigation into allegations of complaint manipulation involving himself, alongside the Daejang-dong special prosecutor investigation.

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