Kim Seong-tae, former chairman of Ssangbangwool Group's treasurer and brother-in-law, Kim Mo, former head of finance at Ssangbangwool Group [Image source=Yonhap News]
[Asia Economy Reporter Kim Hyung-min] On the 12th, the prosecution filed an arrest warrant for Kim Mo, former Head of the Finance Division of Ssangbangwool Group and known as the "treasurer" of former Chairman Kim Sung-tae.
The Criminal Division 6 of Suwon District Prosecutors' Office (Chief Prosecutor Kim Young-nam) filed the arrest warrant with the court on charges including violation of the Foreign Exchange Transactions Act, fraudulent unfair trading under the Capital Markets Act, embezzlement of company funds, and breach of trust for unfair support to an unlisted company.
Kim is also the brother-in-law of former Chairman Kim. He attracted attention as a figure who had worked as the Head of the Finance Division at Ssangbangwool Group for over 10 years, having a thorough understanding of the group's cash flow. The prosecution believes Kim was involved in the process of raising funds for remittances to North Korea through two paper companies (SPCs) established by former Chairman Kim.
It is also known that part of the $8 million transferred by former Chairman Kim to North Korea in 2019 (including $5 million for the North Korean smart farm project and $3 million for the Gyeonggi Province governor's visit to North Korea) was arranged by Kim.
When the prosecution's investigation into Ssangbangwool intensified last year, Kim fled overseas but was arrested in early December last year in Thailand. After refusing repatriation to Korea and engaging in legal battles locally, he was fined 4,000 baht (approximately 150,000 KRW) on the 7th by the local court for illegal stay charges and then expressed his intention to voluntarily return.
Kim was brought back to Korea the day before yesterday. Subsequently, the prosecution conducted intensive questioning of Kim. It is reported that they inquired about the source of the $8 million funds that former Chairman Kim reportedly sent to North Korea, whether there were additional remittances, and the purpose of the transfers.
Kim's pre-arrest detention hearing (warrant review) is scheduled to be held on the 13th at Suwon District Court.
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