Prosecutors sought arrest warrants Monday for three key figures in an urban development scandal on charges of breach of trust and bribery in connection with a lucrative project in Seongnam, south of Seoul.

Prosecutors have been looking into suspicions over how a previously unheard-of asset management company, Hwacheon Daeyu, and its seven affiliates reaped astronomical profits from a 2015 project to develop the Daejang-dong district in Seongnam into an apartment complex.

The Seoul Central District Prosecutors Office sought the warrants for Kim Man-bae and Nam Wook, private partners of the project, who are alleged to have colluded with Yoo Dong-gyu, former acting president of Seongnam Development Corp., to set the terms of the public bidding in the project to allow Hwacheon Daeyu to become the preferred bidder.

Prosecutors believe that Hwacheon Daeyu reaped profits of 65.1 billion won ($55.3 million) from the alleged collusion and caused damage to Seongnam Development Corp.

Investigators also sought an arrest warrant for Chung Min-yong, former head of the strategy business division at Seongnam Development Corp., who is suspected of colluding with Kim, Nam and Yoo.

Prosecutors also pressed additional breach of trust charges against Yoo, who was arrested and then indicted last month on charges of accepting 500 million won in bribes in exchange for business favors to Hwacheon Daeyu.

Last month, prosecutors had sought an arrest warrant for Kim, but a Seoul court rejected the request, citing insufficient grounds for his arrest. Whether the court accepts or rejects the second request for Kim could be critical in the investigation moving forward.

The scandal has received intense media coverage amid questions about its potential impact on next year's presidential election, as the project was launched when the ruling Democratic Party's presidential nominee, Gyeonggi Gov. Lee Jae-myung, was mayor of Seongnam.

The main opposition People Power Party has claimed Lee was behind the whole scheme.

Lee has apologized for what he described as "appointing the wrong people" but has rejected all allegations raised against him. (Yonhap)