Court says no to extending detention of key Daejang-dong figure

The former journalist is suspected of attempting to manipulate the results of the last presidential election through a false interview, which framed then People Power Party candidate Yoon Suk Yeol.

Kim Man-bae, former jounralist and the center of the Daejang-dong development project, stands in front of the Seoul Central District Court in Seoul on Feb. 17 for evaluation on his second arrest. [YONHAP]

The court on Wednesday rejected a request to extend the detention of former journalist Kim Man-bae, a central figure in the controversial Daejang-dong development scheme.

The former MoneyToday journalist had been detained in prison since February, his second time in prison as he was released in November after spending a year in prison.

He was previously held in custody for trying to destroy or conceal evidence including ill-gotten profits gained from the Daejang-dong development scheme.

The prosecutors’ office had sought to extend Kim's detention based on new evidence suggesting that the former journalist had attempted to manipulate the results of the last presidential election through a false interview that framed then-People Power Party candidate Yoon Suk Yeol.

The alleged fabricated interview is suspected of trying to deflect allegations against then-Democratic Party candidate Lee Jae-myung regarding his involvement in the controversial development project.

On Wednesday, the Seoul Central District Prosecutors' Office conducted searches at Kim's residence and office, as well as at real estate development company Hwacheon Daeyu in Seongnam, Gyeonggi.

This latest raid follows a previous search of the home and office of Shin Hak-lim, a former journalist and chairman of the National Union of Media Workers of the Korean Confederation of Trade Unions.

Shin is accused of receiving 165 million won ($125,000) from Kim in connection with a false interview published through the progressive media outlet Newstapa just days before the 2022 presidential election. Shin was also an advisor to Newstapa.

While Shin admitted to receiving payment from Kim, he denied that it was compensation for the recorded interview.

Instead, he argued that the payment was related to the sale of three books he authored, including value-added tax.

“Kim first paid 3 million won in advance, and after recognizing its value to be 1 billion won instead of 100 million won, he wired 162 million won, including the value-added taxes,” Shin said.

“Kim highly respects me,” Shin added. “That’s why after meeting him for the first time in 20 years, he spoke to me frankly.”

Both Kim and Shin had previously worked at the same newspaper, the Hankook Ilbo, with Shin joining in 1984 and Kim in 1992.

The timing of the release of the interview has been questioned, especially since Newstapa released the recording on March 6, just three days before the presidential election when in fact the interview was conducted in September 2021.

The PPP argued that the release just before election day was a scheme to give little or no time for other media outlets to verify the authenticity of the claims.

Shin Hak-lim in Goyang, Gyeonggi, on Sept. 1 denying that he was paid by Kim Man-bae in taking part in a false interview intended to frame then-Peopl Power Party candidate Yoon Suk Yeol in 2022 [YONHAP]

In the conversation, Kim accused Yoon of being the center of the controversial Daejang-dong development project and of quashing an investigation into Busan Savings Bank's illegal loans and slush fund in 2011.

Kim told Shin that a broker, Cho Woo-hyung, who illegally borrowed loans from the Busan Savings Bank, visited Yoon’s office where the prosecutor only handed him a coffee and let the suspect go without further interrogation.

The former journalist said it was a request that Yoon received from his former superior Park Young-soo, whom Kim introduced to Cho.

Kim told Shin that because Yoon didn’t indict the broker, Cho’s illegal loan became the financial foundation used in investing the Daejang-dong development project.

However, it was later reported by local media that the broker Cho had told prosecutors that he had never met Yoon and that the person in charge of the investigation at the time was another prosecutor named Park.

The issue was brought up during a debate on Feb. 25, 2022 even before the recorded conversation was made public.

The DP candidate Lee asked his opponent, “Why did you serve Cho a coffee?”

Yoon denied knowing the individual in question.

Yoon won the presidential election with a narrow margin of 0.74 percentage points, receiving 48.56 percent of the vote compared to Lee's 47.83 percent, a difference of 240,000 votes.

The Daejang-dong development controversy first came to light on August 31, 2021.

The report raised concerns about how Hwacheon Daeyu, a company founded by Kim Man-bae and investors, was able to profit significantly from a 1.5-trillion won development project despite having only 50 million won in capital and being just one week old.

Speculations arose regarding the possible involvement of DP leader Lee Jae-myung, who was the Seongnam city mayor at the time, and his associates in orchestrating the project to secure substantial profits.

BY LEE HO-JEONG [lee.hojeong@joongang.co.kr]