A person surnamed Bae, the real owner of Cheonhwadongin No. 7, an affiliate of Hwacheon Daeyu, who is suspected of receiving about 12.1 billion won in criminal proceeds from private operators in the Daejang-dong project, has been indicted.
The Seoul Central District Prosecutors' Office said on the 26th that it indicted Bae without detention on charges of violating the Act on Regulation and Punishment of Criminal Proceeds Concealment. Prosecutors believe Bae knew the development profits from the Daejang-dong project were criminal proceeds but accepted them and used them to purchase real estate and more, concealing the criminal proceeds.
Bae invested 10 million won in Cheonhwadongin No. 7 and was found to have received 12.1 billion won in dividends from private operators in the Daejang-dong project. Prosecutors determined that this money constituted criminal proceeds derived from the Daejang-dong project.
Bae is known as a former legal affairs reporter and a junior colleague of Kim Man-bae, the major shareholder of Hwacheon Daeyu. Prosecutors believe Bae was involved from the early stages of the project, including between 2011 and 2012 when Bae introduced Kim to private operators in the Daejang-dong project such as attorney Nam Wook and accountant Jung Young-hak.
Separately from this indictment, prosecutors plan to respond to the motion to cancel preservation orders for confiscation and collection filed by the Daejang-dong private operators by submitting Bae-related materials to the court.
Prosecutors, however, decided not to indict both Kim's older brother and older sister, who had been suspected of receiving and hiding, respectively, a cashier's check of unknown amount and valuables worth 1.9 billion won from Kim Man-bae. Prosecutors said, "Given the amount, the acquisition process, and the timing, it is hard to conclude the assets concealed were criminal proceeds."