[Asia Economy Reporter Kim Hyung-min] Kim Sung-tae, former chairman of Ssangbangwool Group, who is suspected of paying legal fees on behalf of Lee Jae-myung, leader of the Democratic Party of Korea, was extradited on the 17th, and Bae Sang-yoon, chairman of KH Group, is also expected to return to the country soon.
Chairman Bae has an arrest warrant issued for obstructing the bidding process for the Alpensia Resort in Pyeongchang, Gangwon Province. He has a close business relationship with former Chairman Kim, often referred to as an 'economic community,' and is also implicated in Kim's alleged 'fund transfers to North Korea,' drawing attention to his movements.
According to KH Group on the 17th, Chairman Bae, currently staying in Southeast Asia, plans to return home once the sale of the Hyatt Hotel is finalized.
In June 2021, during a competitive bidding process, KH Gangwon Development Co., Ltd., a special purpose corporation under KH Group, purchased the Alpensia Resort for 711.5 billion KRW. Both companies participating in the bid were revealed to be affiliates of KH Group, leading to charges of 'bid rigging.'
The Gangwon Police handed over the case involving three individuals?former Gangwon Governor Choi Moon-soon, provincial government officials, and KH Group associates?on charges of bid rigging to the prosecution. However, the investigation against Chairman Bae, who was abroad at the time, was suspended. Additionally, an arrest warrant was issued, and a wanted notice was issued with instructions to notify upon his arrival in the country.
The police also applied to invalidate his passport, but since the statutory penalty for bid rigging is imprisonment of two years or less, it did not meet the requirements under the Passport Act for 'persons subject to investigation suspension or arrest warrant issuance for crimes punishable by imprisonment of three years or more,' and thus was not accepted.
Upon Chairman Bae's return, the Gangwon Police are expected to execute the arrest warrant, investigate the Alpensia case first, then hand it over to the prosecution, which will focus on investigating the Alpensia bid rigging charges as well as the suspicions of fund transfers to North Korea.
Separately from the bid rigging charges, Chairman Bae is suspected of supporting Ssangbangwool Group's fund transfers to North Korea by helping KH Group secure the North-South economic cooperation business rights.
Excluding Chairman Bae, the prosecution, which took over the bid rigging case involving three suspects, conducted comprehensive raids on more than 20 locations, including KH Group headquarters, affiliates, and residences of related individuals, at the end of December last year.
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