[Asia Economy Reporter Kim Hyung-min] The prosecution is reported to have specified in the indictment that the 'cost of Gyeonggi Province Governor Lee Jae-myung's visit to North Korea' was one of the purposes of former Ssangbangwool Group Chairman Kim Sung-tae's remittance to North Korea. However, Lee Jae-myung, the leader of the Democratic Party of Korea, was not included among the five accomplices charged with violating the Foreign Exchange Transactions Act.
According to the legal community and Yonhap News on the 11th, the Criminal Division 6 of Suwon District Prosecutors' Office (Chief Prosecutor Kim Young-nam) reportedly stated in Kim's indictment that the purposes of illegal foreign currency smuggling were twofold: payment of $5 million for Gyeonggi Province's North Korean smart farm project and payment of $3 million for Governor Lee Jae-myung's visit to North Korea.
The prosecution believes that in July 2019, Kim attended the '2nd Asia-Pacific International Conference for Peace and Prosperity' held in the Philippines, where he discussed inter-Korean economic cooperation projects with Ri Jong-hyok, Vice Chairman of the Korean Asia-Pacific Peace Committee (Korean Asia-Pacific Committee), Song Myung-chul, Deputy Director, and others, and heard from North Korean officials about 'Gyeonggi Province's request for a visit to North Korea.'
At this meeting, the North reportedly proposed to Kim that 'Gyeonggi Province has continuously requested Governor Lee Jae-myung's visit to North Korea, and to make this happen, about $3 million in costs are needed.'
Kim testified to the prosecution that he consulted with former Deputy Governor Lee Hwa-young and others about paying the $3 million for the governor's visit, and between November and December 2019, he divided the $3 million among dozens of executives and employees, who concealed the money in their belongings and departed from Shenyang, China, before delivering it to Song Myung-chul, Deputy Director of the Korean Asia-Pacific Committee.
Lee Jae-myung, the leader of the Democratic Party of Korea, who is under suspicion of breach of trust related to preferential treatment allegations in the Daejang-dong and Wirye New Town development projects, is appearing at the Seoul Central District Prosecutors' Office on the 10th as a suspect. Photo by Kang Jin-hyung aymsdream@
The prosecution believes that the payment for the smart farm costs was requested by former Deputy Governor Lee. It is understood that Lee asked Kim to support the smart farm costs in North Korea on behalf of Gyeonggi Province, stating that if the payment was not made, Gyeonggi's inter-Korean projects would face difficulties.
Kim reportedly testified that 'Ssangbangwool also made the payment to receive support from Gyeonggi Province for inter-Korean projects and to gain opportunities to participate in profit-making projects promoted by Gyeonggi.'
In this regard, Kim is also accused of providing illegal political funds amounting to 330 million KRW (including 260 million KRW in bribes) to former Deputy Governor Lee in exchange for assistance in various profit-making projects, including future inter-Korean projects promoted by Ssangbangwool. The prosecution has determined that the payment funds were prepared using money from Ssangbangwool Group and a paper company established by Kim.
The prosecution named five accomplices charged with violating the Foreign Exchange Transactions Act alongside Kim Sung-tae, including Vice Chairman Bang Yong-chul, former Chief of Finance Kim, former Deputy Governor Lee, and Chairman Ahn of the Asia-Pacific Cooperation Association. Lee Jae-myung was not mentioned as an accomplice.
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