Prosecution Indicts Sunoa Faction Member for 'Hyatt Hotel Disturbance'

Seoul Central District Prosecutors' Office, Seocho-gu, Seoul. Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Kim Daehyun] A member of the violent organization Sunoa-pa, who caused a disturbance at the Grand Hyatt Seoul hotel two years ago, has been arrested and indicted.

According to the legal community on the 8th, the Violent Crime Investigation Division of the Seoul Central District Prosecutors' Office (Chief Prosecutor Shin Junho) recently indicted Sunoa-pa operative A on charges of organizing a criminal group.

Earlier, A was suspected of recently joining and acting as a member of Sunoa-pa. Sunoa-pa is considered one of the top 10 violent organizations in South Korea. It was formed in the 1980s in Mokpo, Jeonnam, and reportedly expanded its influence nationwide after moving its base of operations to Seoul in the mid-2000s. In 2006, 65 members of Sunoa-pa were caught by the police for forcibly taking various interests in apartment construction sites and shares in entertainment establishments, causing controversy.

The organization became the subject of investigation again in October 2020 when about 10 members, including operatives, caused a disturbance at the Grand Hyatt Seoul hotel. At that time, the members reportedly caused a commotion demanding Chairman Bae Sang-yoon of KH Group, the hotel's owner, to repay 6 billion KRW.

After receiving the case from the police, the prosecution conducted supplementary investigations, including raids on the Seoul dormitory, to understand the reality and activities of Sunoa-pa. A was indicted for recruiting other members after joining the organization. However, it was determined that A was not directly involved in the hotel disturbance.

The prosecution is reportedly planning to investigate the circumstances of the hotel disturbance, the background of the members' demand for 6 billion KRW from Chairman Bae, and whether the dispute arising during KH Group's acquisition of the hotel for 600 billion KRW in December 2019 with a private equity fund is related to Sunoa-pa's disturbance.

The investigation is also ongoing into the bid-rigging case involving KH Group's sale of the Pyeongchang Alpensia Resort. Gangwon Development Corporation sold the Alpensia Resort to KH Gangwon Development Co., a special purpose company under KH Group, for 711.5 billion KRW through a competitive bid in June last year. However, both companies participating in the bid were revealed to be affiliates of KH Group, raising suspicions of prior coordination. Chairman Bae Sang-yoon, who is known to be staying abroad, has been wanted in connection with this case.

Chairman Bae is also business-related to former Ssangbangwool Group Chairman Kim Sung-tae, who is suspected of paying legal fees for Lee Jae-myung, leader of the Democratic Party of Korea. The Suwon District Prosecutors' Office is looking into the possibility that KH Group supported Ssangbangwool's funds for inter-Korean remittances to secure the rights for inter-Korean economic cooperation projects.