Bang Yong-cheol "Discussed North Korea Projects with Lee Hwa-young... Who Would Invest Without Conviction"

"Ssangbangwool, Not Hyundai or Samsung"
"Ewhayeong Provided Corporate Cards Upon Request"

Bang Yong-chul, Vice Chairman of Ssangbangwool Group, testified that he discussed related matters with former Gyeonggi Province Peace Deputy Governor Lee Hwa-young during the process of promoting inter-Korean projects.

On the 3rd, Vice Chairman Bang appeared as a witness at the 17th trial of former Deputy Governor Lee's bribery case, held at the Suwon District Court Criminal Division 11 (Presiding Judge Shin Jin-woo). Vice Chairman Bang stated, "If Gyeonggi Province had no involvement, the North would not have signed an economic cooperation contract with us."

When the prosecution asked, "Did you share the North Korea business proposal written in December 2018 with former Deputy Governor Lee?" he replied, "Not the detailed contents, but I was informed on January 17, 2019, that Deputy Director Song Myung-chul would come." This was the day Ssangbangwool and the North's Korean Asia-Pacific Peace Committee discussed economic cooperation.

Vice Chairman Bang said, "At the meeting with the Korean Asia-Pacific Peace Committee officials, former Chairman Kim said, 'We will work together with Gyeonggi Province (on the inter-Korean project),' and also said, 'I will pay the money (Gyeonggi Province smart farm project funds) precisely, so don't worry.'"

When the prosecution asked, "Was former Chairman Kim's statement something that had been discussed in advance with former Deputy Governor Lee?" Vice Chairman Bang answered, "I shared more with former Deputy Governor Lee than I reported to former Chairman Kim."

Vice Chairman Bang also testified that on January 17, 2019, after Ssangbangwool paid $5 million on behalf of Gyeonggi Province for the smart farm inter-Korean project to the North, he spoke with former Deputy Governor Lee by phone.

When asked by the prosecution, "Is it true that former Deputy Governor Lee claims Ssangbangwool's inter-Korean project is unrelated to Gyeonggi Province?" he responded strongly, saying, "That does not make sense logically."

Vice Chairman Bang explained, "Ssangbangwool is not Hyundai or Samsung, and the $5 million is former Chairman Kim's personal money. Who would pay that without certainty? At that time, the North requested $5 million for Gyeonggi Province Governor Lee Jae-myung's visit expenses, but we pleaded lack of funds and reduced it to $3 million."

Vice Chairman Bang reiterated his bribery allegations, stating, "I personally handed the Ssangbangwool corporate card to former Deputy Governor Lee," and "I also provided a company vehicle."

Former Vice Governor of Peace of Gyeonggi Province, Lee Hwa-young. [Photo by Yonhap News]

Vice Chairman Bang, who was indicted and detained along with former Deputy Governor Lee, had denied the charges until the previous 16th trial but reversed his position by admitting all bribery charges through a lawyer's statement.

When the prosecution asked about the reason for the reversal, Vice Chairman Bang replied, "My younger brothers, who have lived with me for 30 years including employees in their 20s, were detained and investigated for evidence tampering. I felt like trying to cover the sky with my palm."

When the prosecution asked, "I understand internal staff suggested retrieving the corporate card given to former Deputy Governor Lee. Why was it not retrieved?" Vice Chairman Bang answered, "He said, 'I have places to spend the money,' so I said, 'Okay, brother.'"

Regarding the reason for listing an acquaintance of former Deputy Governor Lee as a fake employee at Ssangbangwool and paying a salary, Vice Chairman Bang said, "It was at former Deputy Governor Lee's request."

He also revealed that in July 2019, he went to a location where Ssangbangwool employees and former Deputy Governor Lee were present and handed over a suit and an envelope containing 50 million won.

When asked by the prosecution about the relationship between former Chairman Kim Sung-tae and Lee Jae-myung, then Governor of Gyeonggi Province and leader of the Democratic Party, Vice Chairman Bang said, "Former Deputy Governor Lee Hwa-young or lawyer Lee Tae-hyung mediated phone calls between former Chairman Kim and Governor Lee, but they never spoke directly or met face-to-face," adding, "I don't think it's accurate to say they were close."

Former Deputy Governor Lee is accused of using a corporate card issued in the name of a Ssangbangwool general affairs team employee and using a company vehicle even after resigning as an outside director of Ssangbangwool from June 25, 2019, to August 25 last year. He is also charged with receiving about 300 million won in bribes and illegal political funds by falsely registering his acquaintances as Ssangbangwool employees to receive salaries.

The prosecution is investigating former Deputy Governor Lee on charges of smuggling foreign currency (violation of the Foreign Exchange Transactions Act), believing he requested former Chairman Kim to pay $5 million on behalf of Gyeonggi Province for the smart farm inter-Korean project.

Former Deputy Governor Lee denies all related charges, including bribery and foreign currency smuggling for inter-Korean remittances.