Prosecutors Indict Asia-Pacific Association President for $500,000 'North Korea Remittance' Charge

The Taegeukgi and the Prosecutor's Office flag hanging at the Seoul Central District Prosecutors' Office in Seocho-gu, Seoul
[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyung-min] The chairman of the Asia-Pacific Peace Exchange Association (APPEA) has been indicted on charges of delivering donations received from Ssangbangwool Group to high-ranking North Korean officials.

The Criminal Division 6 of Suwon District Prosecutors' Office (Chief Prosecutor Kim Young-nam) on the 29th arrested and indicted Chairman Ahn of APPEA on charges of embezzlement, violation of the Foreign Exchange Transactions Act, and instigation of evidence concealment.

Chairman Ahn is accused of embezzling over 1.3 billion won received as subsidies from Gyeonggi Province and corporate donations from Ssangbangwool and others between 2018 and 2019, using the funds for personal living expenses and entertainment. In particular, he is also charged with exchanging about 80 million won of donations received from Ssangbangwool and others into US dollars, smuggling them into China, and delivering them to Kim Yong-chol, head of the United Front Department in North Korea. When the prosecution's investigation tightened, on July 11, Ahn allegedly instructed employees to hide 17 hard drives from office computers and conceal North Korean paintings that were not declared to customs.

The prosecution estimates that the foreign currency Ahn handed over to North Korea amounted to a total of 500,000 US dollars (approximately 550 million won at the exchange rate at the time). It is believed that Ahn, who acted as a broker for North Korea at the time, gave money to North Korea as a form of lobbying. Additionally, he is under investigation for purchasing 9.4 million won worth of shares in Nanos, a Ssangbangwool affiliate company, where he was recruited as an inside director. Nanos is suspected to be a company that Ssangbangwool attempted to boost its stock price by securing economic cooperation business rights with North Korea during this period.

Ssangbangwool is under prosecution investigation for allegedly smuggling 6.4 million US dollars (approximately 7.2 billion won at the exchange rate at the time) to China in January 2019, mobilizing dozens of executives and employees from its affiliates.