KIM MAN-BAE QUESTIONED BY POLICE

[Anchor Lead]

A major shareholder of the asset management firm Hwacheondaeyu, which is at the center of a favoritism scandal, was questioned by police for over 12 hours on Monday. Kim Man-bae said the five billion won severance pay given to a lawmaker's son who worked at the firm was because of an industrial accident, though a disaster claim was not filed.

[Pkg]

Kim was summoned by police as a witness and was grilled for 12 hours. Police reportedly asked why he borrowed a large sum of money from the company and where he spent it.

[Soundbite] Kim Man-bae(Major shareholder of Hwacheondaeyu) : "I'll actively cooperate in the investigation to help defuse allegations."

Regarding the massive 5 billion won severance pay lawmaker Kwak Sang-do's son received from the firm, Kim said the son had suffered an industrial accident.

[Soundbite] Kim Man-bae(Major shareholder of Hwacheondaeyu) : "The son didn't file a disaster claim though he suffered a major accident. It's his private matter so I believe he will do so later if deemed necessary."

Police launched an internal probe into Kim in April. The Korea Financial Intelligence Unit notified police about dubious fund flows involving Hwacheondaeyu, including tens of billions of won Kim borrowed from the firm since 2019.

[Soundbite] Kim Man-bae(Major shareholder of Hwacheondaeyu) : "I don't have any of the money now. I borrowed funds to start a business and spent it on operational costs."

Police are trying to verify facts with a number of figures including Kim, Hwacheondaeyu CEO Lee Seong-moon and the head of another related firm, Cheonhwadongin. If suspicions are detected, the probe will shift to a formal investigation. It's also been found that Kwak Sang-do himself received at least 25 million won in donations from key Hwacheondaeyu officials. Lee gave him 10 million won while 3 others, including the owner of Cheonhwadongin, provided 5 million won each. Also, the daughter of former special counsel Park Young-soo who also worked at Hwacheondaeyu was found to have purchased an apartment in June that was in the firm's possession. Park's side said the property was purchased legally.