12 People Including Ssangbangwool Vice Chairman Who Helped Kim Sung-tae Flee Abroad Head to Trial

[Asia Economy Reporter Kim Daehyun] Twelve executives and employees of Ssangbangwool Group and its affiliates have been indicted on charges including aiding former chairman Kim Sung-tae's overseas escape and destroying evidence related to various corruption allegations. On the 30th, the Criminal Division 6 of Suwon District Prosecutors' Office (Chief Prosecutor Kim Young-nam) announced that four people, including Kim's younger brother Kim, vice chairman of Ssangbangwool Group, were arrested and indicted on charges of instructing evidence destruction and harboring a criminal, while eight others were indicted without detention.

Suwon District Prosecutors' Office, Yeongtong-gu, Suwon City Photo by Yonhap News

Earlier, they were accused of helping former chairman Kim stay abroad after he fled overseas at the end of May last year to avoid prosecution, as well as destroying various evidence such as replacing office computers.

Two executives from the Kwanglim affiliate, including executive A who was indicted with detention, reportedly even held a birthday party for former chairman Kim, who was on the run in Thailand, on July 29 last year.

Former chairman Kim Sung-tae was captured by the local immigration arrest team at a golf course in the Pathum Thani area of Thailand on the 10th, along with current Ssangbangwool chairman Yang Seon-gil. Both former and current chairmen are detained and currently held at Suwon Detention Center.

Former chairman Kim faces charges including ▲ breach of trust amounting to about 450 billion KRW and embezzlement of several hundred million KRW ▲ violation of the Capital Markets Act such as false disclosure of 20 billion KRW convertible bonds ▲ suspicion of remitting 5 million USD (about 6 billion KRW) to North Korea ▲ bribery of over 300 million KRW to former Gyeonggi Province Peace Deputy Governor Lee Hwa-young and violation of the Political Funds Act ▲ instructing employees to replace PCs to destroy evidence ▲ suspicion of paying legal fees for Lee Jae-myung, leader of the Democratic Party of Korea.

The prosecution is investigating the flow of funds, suspecting that former chairman Kim engaged in illegal activities by selling or purchasing convertible bonds (CB) issued during the acquisition of affiliates. Former chairman Kim is expected to be brought to trial next week.