Choi Moon-soon: "Meeting with KH Group Chairman Was Immediately After, Not Just Before, Alpen시아 Bid Award"

Choi Moon-soon, Governor of Gangwon Province Photo by Asia Economy DB

[Asia Economy Reporter Kim Hyung-min] Former Gangwon Province Governor Choi Moon-soon denied allegations that he met with Bae Sang-yoon, chairman of KH Group, just before the bid for the sale of Alpensia Resort, stating that the meeting took place "immediately after the bid opening, not just before the bid."

In a statement released on the 4th, former Governor Choi said, "The bid was finalized on June 21 at 11 a.m., with KH Gangwon Development, which offered the highest amount, effectively confirmed as the buyer," adding, "After receiving the notification of the result, I visited KH around 6 p.m. on the same day to express my gratitude."

He continued, "Interviews were conducted on the 22nd and 23rd to assess the eligibility of KH Gangwon Development's bid and their payment capability, and the final decision was made on the 24th to confirm them as the successful bidder. However, this was an administrative formality to verify document eligibility, and the main details were effectively settled with the bid on the 21st," he explained.

Regarding the suspicion that he met "only with KH Group multiple times," he stated, "Since the Alpensia sale was unsuccessful four times, we requested purchase intentions not only from KH Group but also from other companies interested in buying, and met with several group chairmen and their staff," adding, "We will disclose accurate meeting records including specific dates and locations."

Former Governor Choi dismissed allegations of a low-price sale, saying, "The sale price was calculated based on the appraisal value determined by multiple appraisal firms as prescribed by law, with the appraisal value around 900 billion KRW, and after four failed bids, it was finally sold for 711.5 billion KRW."

He added, "Before GDC (Gangwon Development Corporation) conducted the bid, they internally surveyed the market price through an accounting firm for management judgment, which was only about 500 billion KRW, and industry experts evaluated that the price received was above the market price."

Choi reiterated his previous stance, saying, "The bidding process was conducted fairly and transparently through Onbid, a national system, and Gangwon Province did not intervene in this process nor could it have done so," and added, "Gangwon Province was informed of the bid results only after the bid opening results were made public," calling the notion of a pre-arranged bid "an excessive speculation."

GDC sold Alpensia Resort to KH Gangwon Development Co., Ltd., a special purpose company under KH Group, which was selected as the final successful bidder through a competitive bidding process last year, for a total sale price of 711.5 billion KRW. Subsequently, both companies that participated in the bid were revealed to be affiliates of KH Group, raising suspicions of collusion. The police investigating the case referred three people, including former Governor Choi, officials from the provincial office, and one KH Group official, to the Chuncheon District Prosecutors' Office on charges of bid rigging. The case was transferred to the Violent Crime Investigation Division (Chief Prosecutor Shin Junho) of the Seoul Central District Prosecutors' Office, where the investigation team conducted raids on the former governor’s residence, Gangwon Governor’s office, Pyeongchang County Office, and KH Group affiliates on the 27th and 28th, securing internal approval documents related to the sale for analysis.