Undisclosed Information Delivered to KH Group via Gangwon Development Corporation Official
KH Group Faces Collusion Allegations in "Pre-arranged Sale"... Acquires Resort for 711.5 Billion Won
Prosecutors to Investigate Possible Collusion with KH Group Chairman Bae Sangyoon Upon His Return
Former Gangwon Province Governor Choi Moonsoon has been indicted on charges of providing bidding information to a specific company during the sale process of the Alpensia Resort in Pyeongchang, Gangwon Province.
Choi Moonsoon, governor of Gangwon Province and a presidential primary candidate of the Democratic Party of Korea, is attending and giving a greeting at the presidential candidate invitation debate held by the Press Center in Jung-gu, Seoul on the 6th. Photo by National Assembly Press Photographers Group
The Violent Crime Investigation Division of the Seoul Central District Prosecutors' Office (headed by Kim Boseong) announced on the 28th that Choi was indicted without detention on June 30 on charges of bid rigging and violation of the Anti-Corruption Act. Choi is accused of delivering undisclosed information, including bidding prices, to KH Group through a Gangwon Development Corporation official dispatched to his office.
The resort became subject to public sale due to Gangwon Province's financial difficulties after the 2018 Pyeongchang Winter Olympics, but the sale failed four times. Subsequently, in 2021, KH Gangwon Development, a special purpose company (SPC) of KH Group, acquired it for 711.5 billion won through a competitive bidding process. However, only KH Group affiliates participated in the bidding at the time, raising suspicions of collusion and a "pre-arranged" sale.
Prosecutors believe that KH Group repeatedly bid and withdrew using internal information obtained from Gangwon Province, and in this process, gained approximately 20 billion won in profits.
In response, Choi stated in a media interview in July 2023, "I only tried to sell the asset and did not provide information such as the final bid price," denying the charges.
Prosecutors plan to begin a full-scale investigation into possible collusion between Choi and KH Group Chairman Bae Sangyoon as soon as Bae, who is currently overseas, returns to Korea. Bae left the country in June 2022 after a prosecution search and seizure, and recently stated in a media interview that he intends to return in August. In addition to the Alpensia Resort sale, he is also under investigation for alleged remittance to North Korea and stock price manipulation.
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