The heads of partner companies and public officials involved in the so-called "Gyeongnam Hapcheon Video Theme Park Hotel Construction Project Fund Embezzlement" case have been referred to the prosecution in large numbers.
The Anti-Corruption Investigation Unit of the Gyeongnam Provincial Police Agency announced on the 17th that it had sent nine people, including landscaping company CEO A, to the prosecution without detention on charges of breach of trust, and four former and current Hapcheon County officials on charges of bribery.
With this, the total number of people referred to the prosecution has reached 17, including four, such as project developer CEO C, who were previously indicted and detained.
Employees of the financial company who were reported last July by Hapcheon County for allegedly approving fund disbursement due to insufficient document review were not referred to the prosecution due to lack of evidence.
According to the police, the nine people sent to the prosecution, including landscaping company CEO A, are accused of embezzling several billion won over 20 occasions from December 2021 to March last year by submitting false contracts to a trust financial company to obtain project funds.
There were a total of eight companies involved in the crime, five of which were found to be shell companies (paper companies) with no actual business operations.
Four former and current public officials, including B, are suspected of receiving money and entertainment from the project developer and others in exchange for providing favors during the hotel construction project process in February last year.
The Hapcheon Video Theme Park accommodation facility construction project was to build a hotel with 200 rooms and a total area of 7,336 square meters on a 1,607-square-meter site within the theme park.
According to the agreement, the developer was to invest 4 billion won and borrow the remaining 55 billion won through real estate project financing (PF), but the actual CEO of the developer, C, disappeared with 17.7 billion won of project funds, exposing charges of breach of trust and embezzlement among those involved and leading to the project's collapse.
Following a complaint from Hapcheon County in May last year, the police launched an investigation and previously arrested four people, including the actual CEO C, the nominal CEO, and the vice president of the developer.
On the 24th of last month, the Geochang Branch of the Changwon District Prosecutors' Office sought a sentence of 10 years and 6 months in prison for project developer CEO C, who was brought to trial, and 7 years each for two executives and employees indicted on the same charges.
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