LAND SCANDAL INVESTIGATION SPEEDS UP

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Prosecutors investigating allegations surrounding a land develop project have questioned an individual who helped fund capital for asset management firm Hwacheondaeyu in its early days of operation. A developer surnamed Chung and a figure surnamed Bae who owns the affiliate firm Cheonhwadongin No. 7 have also been called in. We have the details

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Hwacheondaeyu borrowed 35 billion won from investment consultancy Keen & Partners in 2015 to fund its operational costs. A broker known by the surname Cho connected the two firms. Cheonhwadongin No. 6, an affiliate of Hwacheondaeyu, collected dividends of 28 billion won in total. Last year, it merged with Cho’s private company. The prosecution summoned Cho for questioning. Cho was reportedly asked about how the large sum of money belonging to SK Happiness Sharing Foundation president Chey Ki-won ended up at Hwacheondaeyu. Cho was also involved in procuring funds for a real estate development agency that had led the Daejang-dong project ten years ago through private sector development. Cho made arrangements to have the developer take out a 110 billion won loan from Busan Savings Bank, and in return received one billion won in kickbacks. Cho avoided punishment during a 2011 probe into Busan Savings Bank but was indicted later in 2015. Also questioned in the ongoing investigation is an individual surnamed Chung who was involved in securing local residents’ land for the Daejangdong development project in 2009. Prosecutors believe Chung played a part in preparing the 300 million won bribe former acting chief of Seongnam Development Corporation Yoo Dong-kyu is said to have received. A former journalist surnamed Bae who is an acquaintance of Kim Man-bae and owns Cheonhwadongin No. 7 has been summoned for the very first time. Bae is known to have introduced Kim Man-bae to lawyer Nam Wook and accountant Jung Young-hak, Summons of a host of figures involved in the early days of the land project point to prosecution efforts to solidify breach of trust charges against Kim Man-bae and other suspects. Kim and Nam Wook are expected to be referred to trial by Monday which is their detention deadline.