PROSECUTORS SEEK ARREST WARRANT FOR KIM

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Prosecutors have sought an arrest warrant for Kim Man-bae, a major shareholder of the asset management firm Hwacheondaeyu at the center of a snowballing land development scandal. Charges applied include bribery, breach of trust and embezzlement. Kim’s side has expressed regret saying the warrant was sought based on recorded files whose credibility is in doubt.

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Three charges are applied in the prosecution’s arrest warrant request for Hwacheondaeyu’s largest shareholder. Kim Man-bae is first accused of giving 500 million won in bribes to Yoo Dong-kyu, the former head of Seongnam Development Corporation. Yoo has also been arrested on charges of receiving payoffs from Kim. Prosecutors also suspect Kim gave a 5 billion-won bribe to the son of lawmaker Kwak Sang-do in the name of severance pay. Kim also faces breach of trust and embezzlement charges. He allegedly conspired with Yoo Dong-kyu in the Daejang-dong development project and inflicted losses on Seongnam Development Corporation by limiting its profits. He is also believed to have embezzled 5.5 billion won from Hwacheondaeyu to be used as bribes. Kim was summoned for questioning over these suspicions based on recorded files submitted by Jeong Young-hak, a related figure who is an accountant. Kim denies all allegations.

[Soundbite] Kim Man-bae(Major shareholder of Hwacheondaeyu) : "(Who is the other half that owns Cheonhwadongin No. 1?) It undoubtedly belongs to Hwacheondaeyu which is my private firm."

His side claims the questioning was held without prosecutors presenting or playing the audio files and that Kim's rights as a defendant were severely violated. They also expressed concerns over the credibility of the files that served as key evidence for the warrant request. A court will decide Thursday whether a warrant can be issued. Meanwhile the police are analyzing Yoo Dong-kyu’s mobile phone which the prosecution failed to previously obtain. An individual who had the phone in possession has also been questioned on charges of concealing evidence.