[Asia Economy Reporter Kim Hyung-min] The prosecution is putting all its efforts into investigating the recent allegations against Lee Jae-myung, a member of the Democratic Party of Korea, regarding 'lawyer fee payment on behalf' and 'embezzlement and breach of trust by Ssangbangwool Group,' drawing significant attention to the results.
According to the prosecution on the 17th, the Suwon District Prosecutors' Office has formed an 'integrated investigation team' by combining the Criminal Division 6 (Chief Prosecutor Kim Young-nam) and the Public Investigation Division (Chief Prosecutor Jeong Won-du) to simultaneously examine Lee’s lawyer fee payment allegations and the Ssangbangwool-related suspicions. Prosecutors on the investigation team are reportedly dedicating themselves to uncovering the facts of the case, even foregoing their summer vacations. They are also working nights and weekends without hesitation. A legal community official said, "The atmosphere within the investigation team is so intense that it can be said the fate of the Suwon District Prosecutors' Office is at stake."
In particular, after it was discovered that investigation secrets were leaked within the Suwon District Prosecutors' Office, the atmosphere among prosecutors and investigators has become severe. Since former prosecutors and other legal professionals are involved in the cases, there is a possibility that this could escalate into a 'major gate.' When it was confirmed that current and former investigators exchanged investigation secrets, the investigation team experienced considerable shock and a sense of betrayal, but also developed a strong determination to uncover the truth of the allegations.
Once the key persons involved are detained, the investigation is expected to accelerate rapidly. The Criminal Division 6 recently obtained arrest warrants for former Ssangbangwool Group Chairman Kim Seong-tae and current Chairman Yang Seon-gil. They are 'key men' who can clarify the flow of funds in the group, including the sale of convertible bonds (CB) worth 4.5 billion won issued by Ssangbangwool in 2020. The prosecution is also considering the possibility that these executives embezzled hundreds of billions of won during the flow of funds.
Former Chairman Kim is also suspected of fleeing overseas after receiving investigation secrets. The prosecution believes that an investigator from the Criminal Division 6 leaked investigation secrets to the law firm where lawyer Lee Tae-hyung is affiliated at the end of May. Coincidentally, former Chairman Kim suddenly left for Singapore in early June. Both chairmen are currently known to be staying abroad. If they do not respond to summons, the prosecution plans to request Interpol to issue red notices based on the arrest warrants obtained.
The prosecution is focusing on investigating the connection between the 'lawyer fee payment on behalf' allegations and the 'Ssangbangwool embezzlement and breach of trust' suspicions. The lawyer fee payment allegation claims that lawyer Lee received 30 million won in cash and convertible bonds worth 2 billion won from Ssangbangwool as fees for handling Lee’s public official election law violation case. The Public Investigation Division handled this investigation. The Ssangbangwool embezzlement and breach of trust case involves suspicious transactions worth tens of billions of won during the issuance and resale of CBs within the group from 2020 to 2021, as reported by the Financial Intelligence Unit (FIU) last November. This case has been handled by the Criminal Division 6.
Then, on the 7th of last month, while the Public Investigation Division was conducting a search and seizure of the law firm office where lawyer Lee Tae-hyung, who was part of Lee’s defense team in the public official election law violation case, is affiliated in relation to the lawyer fee payment allegations, it was confirmed that confidential materials apparently created by the Criminal Division 6 were leaked. Since then, the Criminal Division 1 (Chief Prosecutor Son Jin-wook) has been investigating the leak route and related persons.
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