Multiple journalists and media figures ensnared in Seongnam land scandal

In the Seongnam land development scandal, which has inflicted South Korea’s main opposition leader Lee Jae-myung, involvment now appears to include the media with a CEO, managing editor and senior reporters across multiple news outlets.

The latest to lose their job over suspected ties to Kim Man-bae, the key suspect in the high-profile land development scandal, was a reporter at Hankook Ilbo.

According to the newspaper’s announcement on Friday, the senior reporter borrowed 100 million won ($80,528) from Kim in 2020, which the newspaper determined was an "out of ordinary" transaction.

On Thursday, JoongAng Ilbo said one of its senior reporters was involved in multiple money transactions with Kim, which it said had elements of possibly violating the anti-corruption law. The journalist was revealed to have lent 80 million won to Kim in 2018, for which he was paid back 90 million won seven months later as the principal and interest. In 2020, he borrowed 100 million won. Whether this money was returned was not disclosed. The reporter in question handed in a letter of resignation a day earlier, the company said.

At Hankyoreh, one of the country’s few left-leaning newspapers, the scandal ensnared it CEO and president Kim Hyun-dae, managing editor Ryu Yi-geun and a senior reporter.

It was reported earlier this week that South Korean prosecutors investigating the corruption scandal found evidence of opaque money transactions between Kim and multiple reporters from influential newspapers. Kim, who was a journalist himself for some 20 years, is currently under trial for his role in the scandal.

South Korea's Improper Solicitation and Graft Act defines press as a "public institution," making members of the media susceptible to its application.

Kim Man-bae (second from left) answers questions from reporters at Seoul Central District Court on Friday, before attending his trial about his role in the development project scandal in Daejang-dong, Seongnam, Gyeonggi Province. (Yonhap)

Kim is the largest shareholder of asset management company Hwacheon Daeyu, the key player in the lucrative Daejang-dong development project in Seongnam that occurred when former presidential candidate and current Democratic Party leader Lee was the mayor of the city. A large-scale corruption has been suspected involving the project, with Kim being indicted in 2021 of charges including bribery, embezzlement and breach of trust.

Two of Lee's confidantes were also indicted, sparking suspicion on how much the DP leader was involved in the scandal.

By Yoon Min-sik(minsikyoon@heraldcorp.com)