Criminal Complaint Looms Over Mars Theme Park's 'Bargain Sale'

Opposition Raises Need for Investigation at Environment and Labor Committee's National Audit
"Violation of Collusion Guidelines Caused 300 Billion Won Loss"
K-Water Considering Filing Charges Against 3 Responsible Employees

Korea Water Resources Corporation (K-water) is considering criminally prosecuting employees who sold business land at a low price to Shinsegae Group during the development of the Gyeonggi Hwaseong International Theme Park complex project. These employees violated the project's bidding guidelines and manipulated official documents to establish a business agreement favorable to Shinsegae, which was uncovered by the Board of Audit and Inspection (BAI) and led to disciplinary actions. The necessity for criminal punishment was raised during this year's National Assembly audit.

On the 24th, according to comprehensive reporting, K-water is reviewing the need to file charges against employees who violated bidding guidelines during the land supply contract process for Hwaseong Theme Park. A K-water official stated, "We are re-examining the BAI investigation report," adding, "We will utilize all possible investigations and measures at the corporation level, and if any illegalities are found, we will seek methods such as filing charges."

Earlier, on the 17th, Kim So-hee, a member of the People Power Party, during the National Assembly Environment and Labor Committee audit, said, "The estimated loss K-water suffered from selling the International Theme Park land exceeds 300 billion KRW. Do you think this issue can be resolved with just a disciplinary suspension?" She urged, "It is necessary to identify who is behind this and to clarify the facts through investigation." In response, Yoon Seok-dae, president of K-water, stated, "We will review the BAI audit report again, and if illegalities are found, we will take action to file charges."

Previously, K-water had maintained the position that criminal prosecution was not possible due to the prohibition of duplicate audits under the Public Institution Audit Act.

The Hwaseong International Theme Park Complex Development Project is a plan to build a futuristic advanced complex city on a 4,189,000㎡ (1,270,000 pyeong) site within Songsan Green City, Hwaseong-si, Gyeonggi Province. The photo shows the hoarding at the international theme park construction site within Songsan Green City. Photo by Yongjun Cho jun21@

The K-water employees subject to criminal prosecution are three individuals who were in charge of land sales when the tourist leisure land (2,789,540㎡) in Songsan Green City, Hwaseong-si, Gyeonggi, where Hwaseong Theme Park was to be built, was sold to Shinsegae in 2021. The BAI audit revealed that they violated bidding guidelines and signed a business agreement that undervalued the land, causing financial losses to K-water. They were also found to have manipulated documents to conceal appraisal issues and failed to report these facts to K-water headquarters.

The land was sold to Shinsegae Property, an affiliate of E-Mart, for 325.6 billion KRW based on the undervalued appraisal amount. The appraisers involved in the valuation testified to the BAI that if the bidding guidelines had been followed, the land price would have been at least twice as high. The BAI concluded that these employees improperly handled the determination of the land sale price for the tourist leisure land and requested disciplinary actions such as suspension according to K-water’s personnel regulations last year. K-water accepted this request and decided on disciplinary measures against the three employees.

During the audit, Representative Kim requested that the Environment and Labor Committee of the National Assembly file charges against these employees for breach of duty, given the loss amounting to several hundred billion KRW. In a phone interview with Asia Economy, Kim said, "I will request the Ministry of Environment to file charges under the minister’s name during today’s audit." She also plans to urge Chairman Ahn Ho-young to approve the prosecution agenda at the comprehensive Environment and Labor Committee audit on the 25th.

If charges are filed, the investigation is expected to be handled by the prosecution. Although the prosecution’s investigative authority was significantly reduced by the 2021 prosecution-police investigation rights adjustment, it still retains direct investigation authority over economic crimes involving breach of trust exceeding 500 million KRW.