Prosecutors indict key figure in Daejang-dong scandal

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Prosecutors indict key figure in Daejang-dong scandal

Published: 08 Mar. 2023, 17:58

Kim Man-bae entering a court in Seoul on Feb. 17 that later approved the prosecutors' arrest warrant. [YONHAP]

The central figure in the Daejang-dong profiteering scandal has been indicted for concealing criminal proceeds.

The Seoul Central District Prosecutors’ Office on Wednesday said Kim Man-bae hid 39 billion won in profits made from the Daejang-dong development project in an officetel that was under another’s person name.

Kim is currently in custody as he undergoes questioning.

The 39 billion won was divided into smaller bills or checks.

“We found an additional 5 billion won in profits that were hid while investigating Kim in custody,” an official at the prosecutors’ office.

“So far we have seized and confiscated a total of 207 billion won in profits and assets related to the Daejang-dong project.”

The prosecutor’s office said it is looking into whether Kim used the hidden money for political lobbying.

The former journalist, who was released in November last year, was arrested last month for fear that he might tamper with or destroy evidence.

Kim is accused of smashing his mobile phone in September 2021 and ordering a friend to hide 14.2 billion won last December.

Prosecutors are investigating several other individuals, including lawyer Nam Wook, in connection with the Daejang-dong project in Seongnam, Gyeonggi.

Democratic Party chair Lee Jae-myung has also been implicated in the controversial project.

Lee was Seongnam mayor at the time and approved the development scheme.

Lee is accused on changing regulations to allow private developers to earn windfall profits.

In an arrest warrant for Lee, prosecutors allege that profits from the development project made their way into the DP chief’s political war chest.

The National Assembly narrowly rejected the arrest warrant last week.

Arrest warrants for sitting lawmakers must be approved by a majority of lawmakers in attendance.

"The Daejang-dong case and the Seongnam FC case are serious crimes worthy of arrest," Justice Minister Han Dong-hoon told lawmakers in a detailed 15-minute statement before the motion was voted on at the National Assembly on Feb. 27.

"There was political and business collusion and corruption between and by Mayor Lee Jae-myung and certain businessmen, and a number of accomplices have already been arrested or indicted without detention for the same crimes," he said.

DP chair Lee previously accused President Yoon Suk Yeol of having a relationship with Kim Man-bae, claiming the president’s sister sold their father’s property to the former journalist.

BY LEE HO-JEONG [lee.hojeong@joongang.co.kr]