A local court will decide on whether to arrest the largest shareholder of Hwacheon Daeyu Asset Management, which is at the center of a land development scandal.
The Seoul Central District Court will hold a hearing at 10:30 a.m. on Thursday to review the prosecution's request for a warrant to arrest Kim Man-bae on charges of bribery, embezzlement and breach of trust.
The prosecution filed for Kim's arrest on Tuesday after questioning him for 14 hours as a suspect the previous day.
Kim is accused of giving 500 million won in payoffs to Yoo Dong-gyu, the former head of planning headquarters at the city-run Seongnam Development Corporation, in return for favors pushing for the development project in Seongnam.
The prosecution also suspects the unreasonably high severance pay of five billion won given to the son of a lawmaker who worked at Hwacheon Daeyu was a bribe to get favors.
Kim also allegedly colluded with Yoo to ensure huge profits for Hwacheon Daeyu in the public-private project and thereby inflict losses on Seongnam Development Corporation in the process.
He is accused of embezzling five-point-five billion won from his firm to use for bribes. Kim reportedly denied most of the charges against him.
Kim's arrest is likely to be decided as early as Thursday.