'160 Billion Won Supply Corruption' Artificial Turf Company CEO Denies Charges in Trial

Denial of Joint Crime Charges
Partial Admission of Embezzlement and Sole Offense Allegations

An artificial turf supplier accused of inflating costs while delivering artificial turf to public institutions denied most of the charges in the second trial.

The Criminal Division 11 of the Seoul Eastern District Court (Chief Judge Kang Min-ho) held the second hearing on the 17th for four defendants, including A (53), the CEO of the artificial turf supply company, and co-CEO B (55).

[Image source=Yonhap News]

On this day, A mostly denied the charges related to joint criminal activity. A's lawyer stated, "We deny the charges related to obstruction of official duties by deception concerning the Ministry of SMEs and Startups (MSS) performance certification review, obstruction of official duties by deception regarding the Public Procurement Service (PPS) designation of excellent products, obstruction of official duties by deception related to the PPS third-party unit price contract, and the use of forged documents."

However, some charges related to embezzlement and individual offenses were admitted. The lawyer said, "We admit all charges related to violations of the Framework Act on the Construction Industry, the Construction Technology Promotion Act, and the National Technical Qualifications Act, as well as embezzlement."

According to the prosecution, from October 2018 to last March, the defendants are accused of manipulating test reports and inflating costs while supplying artificial turf used in school playgrounds and local government sports facilities, thereby gaining profits worth approximately 166.5 billion KRW.

The prosecution reportedly uncovered these circumstances while investigating a case in which former Democratic Party lawmaker Lim Jong-seong received money and valuables from the company.

It was found that they submitted false test reports for artificial turf that was still in the development stage and obtained disability enterprise certification and performance certification from the MSS by nominally appointing a disabled person as the representative.

Subsequently, the PPS designated the artificial turf supplied by them as an excellent procurement product, and they signed private contracts with public institutions at inflated prices.