PROBE INTO LAND SCANDAL SPEEDS UP

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The probe into the Daejang-dong land development project is gaining speed. Prosecutors have requested arrest warrants for three figures in the scandal, including Hwacheondaeyu owner Kim Man-bae and lawyer Nam Wook. They have also charged former Seongnam Development Corporation executive Yoo Dong-kyu with breach of trust.

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Prosecutors have requested another arrest warrant for Hwacheondaeyu's major shareholder Kim Man-bae, 18 days after the first warrant was dismissed. The firm is at the center of the Daejang-dong development scandal. One of the accusations listed in the request for an arrest warrant is 500 million won in bribes offered to former Seongnam Development Corporation executive Yoo Dong-kyu. Kim is also being charged with promising 70 billion won to Yoo. The accusation that the 5 billion won paid to Rep. Kwak Sang-do's son was a bribe has been removed from the warrant request. Kim also allegedly embezzled 940 million won in Hwacheondaeyu's corporate funds. In addition to 500 million won offered to Yoo, evidence has been found that he also paid 440 million won to the spouse, sibling and acquaintance of former PPP leader Won Yu-cheol. Prosecutors estimate damage inflicted to the corporation to reach at least 65 billion won as a result of Kim's suspected bribery and embezzlement. He is alleged to have downsized the expected profit from the land development project from over 15 million won per 3.3 sq.m. to 14 million won. The investigators believe Kim inflicted significant losses to the corporation by preventing it from retrieving revenues from the lease of five blocks that had been given to Hwacheondaeyu instead. The prosecutors presume Yoo, Kim, Nam Wook and the corporation's strategic business official Chung Min-yong are involved. Prosecutors have requested arrest warrants for Kim, Nam and Chung. Nam is also suspected of offering Chung 3.5 billion won in bribes under the guise of investment funds. The Seoul Central District Court will decide whether or not to issue the arrest warrants on Wednesday. Prosecutors have also indicted Yoo for breach of trust for conspiring with Kim. Previously, Yoo was indicted only for bribery.