Media Company Chairman Who Borrowed 5 Billion Won from Kim Man-bae and Repaid Only the Principal Sent to Prosecution

Kim Man-bae, the major shareholder of Hwacheon Daeyu Asset Management, is heading to the courtroom on the morning of the 25th at the Seoul Central District Court in Seocho-gu, Seoul, to attend the continued first trial related to lobbying and preferential treatment allegations in the Daejang-dong development project.
[Image source=Yonhap News]

[Asia Economy Reporter Kim Daehyun] The chairman of a media company who conducted financial transactions worth billions of won with Kim Man-bae, the major shareholder of Hwacheon Daeyu Asset Management (Hwacheon Daeyu), has been referred to the prosecution on charges of violating the Improper Solicitation and Graft Act.

According to law enforcement authorities on the 26th, the Gyeonggi Southern Provincial Police Agency sent Kim and media company chairman Hong Mo, among two others, to the prosecution with a recommendation for indictment on charges of violating the Improper Solicitation and Graft Act. Hong is accused of borrowing 5 billion won from Kim around October 2019 and repaying only the principal two months later.

The charge of violating the Improper Solicitation and Graft Act is established if a public official or related person receives or demands money or valuables exceeding 1 million won per occasion or a total of 3 million won per fiscal year from the same individual, regardless of job relevance.

The police are reported to have judged that the interest on the 5 billion won Hong borrowed from Kim exceeded the limit set by the Improper Solicitation and Graft Act.

Earlier, in November last year, the civic group Judicial Examination Preparation Group (Sajunmo) filed a complaint against them with the Supreme Prosecutors' Office. The prosecution transferred the case to the police.

Kim's side reportedly stated that although Hong borrowed and repaid money in a short period at that time, it was unrelated to the Daejang-dong project.

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