[Asia Economy Reporter Kim Hyung-min] Kim Sung-tae, former chairman of Ssangbangwool Group and the 'key man' behind various allegations against Lee Jae-myung, leader of the Democratic Party of Korea, is undergoing a second round of investigation by the prosecution starting around 10 a.m. on the 18th.
According to the legal community on the day, the Criminal Division 6 of Suwon District Prosecutors' Office (Chief Prosecutor Kim Young-nam) has summoned former Chairman Kim, who spent a night at Suwon Detention Center, for further questioning. The prosecution plans to request an arrest warrant for Kim as soon as this investigation concludes. The likely timing is that night, as the arrest warrant executed on Kim expires at around 2:40 a.m. the following day.
Former Chairman Kim Seong-tae of Ssangbangwool Group, who was caught in Thailand while on the run abroad, is returning to Korea through Terminal 1 of Incheon International Airport on the 17th. Photo by Kang Jin-hyung aymsdream@
Previously, the investigation team had brought Kim to the office the day before for a 13-hour interrogation before sending him back to Suwon Detention Center. The initial investigation focused primarily on embezzlement and breach of trust charges. The second investigation is expected to focus on allegations of 'lawyer fee payment on behalf' and 'remittance to North Korea.' All of these are linked to Lee Jae-myung, drawing significant attention.
In particular, the 'lawyer fee payment on behalf' allegation concerns the claim that Ssangbangwool paid 2.3 billion KRW in legal fees to lawyer Lee Tae-hyung during 2018-2019 when Lee Jae-myung was on trial for election law violations. The prosecution believes that former Chairman Kim, the actual owner of Ssangbangwool, orchestrated this. Upon arrival in the country, Kim told reporters, "I do not know Lee Jae-myung well and have never spoken with him." He is expected to deny the charges on the same grounds during this investigation.
The prosecution is likely to pressure Kim with various testimonies and evidence. At the trial of former Gyeonggi Province Deputy Governor Lee Hwa-young, who was indicted the day before on charges including violation of the Political Funds Act, former Ssangbangwool secretary A testified as a witness, stating that "Chairman Kim Sung-tae, Vice Chairman Bang Yong-chul, Gyeonggi Governor Lee Jae-myung, and Deputy Governor Lee Hwa-young had close relations when promoting North Korea-related business."
Immediately upon his arrival the day before, Kim appointed lawyer Yoo Jae-man, a former special prosecutor from the law firm Kwangjang (Judicial Research and Training Institute class 16), and is cooperating with the prosecution investigation. It is reported that he did not exercise his right to remain silent during the first investigation and actively denied the charges. The prosecution questioned Kim about embezzlement and breach of trust based on dozens of prepared questionnaires. Kim is accused of causing breach of trust amounting to about 450 billion KRW by arbitrarily reducing a significant portion of the partnership investment shares of Zeus No.1 Investment Association, which holds rights related to convertible bonds of Ssangbangwool affiliate Nanos, and changing them to his own shares through A, the finance manager of Ssangbangwool Group. Kim maintains his position that "I have never embezzled company funds for personal use."
Meanwhile, Bae Sang-yoon, chairman of KH Group, who is called an 'economic community' with former Chairman Kim, is also expected to return soon and undergo prosecution investigation. According to business circles, Chairman Bae plans to return after completing the sale of the Hyatt Hotel project currently underway in Southeast Asia. Upon his arrival through Incheon Airport, the police are expected to execute an arrest warrant and investigate the Pyeongchang Alpensia Resort bid-rigging case first before handing it over to the prosecution. Subsequently, the prosecution is expected to focus on investigating the bid-rigging case along with the North Korea remittance allegations.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
