SEOUL– The owner of an asset management firm at the center of a high-profile development corruption scandal attended a court hearing on Friday on an arrest warrant sought for him on charges of concealing criminal proceeds.
Kim Man-bae, the main shareholder of Hwacheon Daeyu Asset Management, was accused of stashing away 34 billion won (US$26.8 million) of proceeds from the corruption-ridden apartment development project in the city of Seongnam, just south of Seoul, from October 2021 to November 2022.
The charges against Kim, a former journalist, also include destruction of evidence by having his business partner and friend burn away his mobile phone or conceal checks so as to avoid a court order for forfeiture.
Kim is currently standing trial on breach of duty and other charges related to the scandal that centers on allegations that his firm and its affiliates were chosen as private partners for the project in the Daejang-dong district in 2015 and reaped huge investment profits.
Kim was previously arrested as part of an investigation into the case in 2021 and released a year later.
The development was launched in 2015 while Lee Jae-myung, the leader of the main opposition Democratic Party, was mayor of Seongnam. On Thursday, prosecutors sought a warrant to arrest Lee on breach of duty, conflict of interest and other charges, the first ever arrest warrant sought for the leader of a main opposition party in South Korea.
The Seoul Central District Court is expected to come up with a decision on the warrant request for Kim on Friday night following the court hearing.
Source: Yonhap News Agency