Investigation Team Formed for 'Seongnam FC Sponsorship Fund Allegations'... Reinvestigation from the Beginning

Investigation Intensifies After Presidential Election
Gyeonggi Nambu Police Station Supports 3 at Bundang
Plans for Thorough Review of Fund Flows
Investigation of 'Hyekyunggung Kimssi' Allegation Complainant
Corporate Card Allegation Investigation Scheduled for 14th

Police logo. Photo by Asia Economy DB

[Asia Economy reporters Seongpil Cho and Byeongdon Yoo] On the 16th, it was reported that the police have formed a separate investigation team to conduct supplementary investigations related to the 'Seongnam FC sponsorship fund allegations.'

On the same day, the police also began questioning the accuser regarding allegations that Kim Hye-kyung, spouse of former Democratic Party presidential candidate Lee Jae-myung, received free legal defense during the 'Hyekyunggung Kim' case.

The related investigations, which had been on hold to minimize impact on the presidential election, are now intensifying.

The Seongnam Bundang Police Station in Gyeonggi Province completed reviewing materials related to the Seongnam FC sponsorship fund allegations, for which the Suwon District Prosecutors' Office Seongnam Branch requested supplementary investigation last month. The Bundang Police Station reportedly formed a separate investigation team by receiving support from three personnel belonging to the Anti-Corruption and Economic Crime Investigation Unit of the higher authority, the Gyeonggi Nambu Provincial Police Agency.

The police investigation is said to have restarted from the beginning. The Seongnam FC sponsorship fund allegations center on the claim that during Lee’s tenure as mayor of Seongnam and owner of Seongnam FC from 2015 to 2017, six companies (Naver, Doosan Construction, Nonghyup, Bundang CHA Hospital, Hyundai Department Store, and Alphadom City) paid approximately 16 billion KRW to Seongnam FC under the name of advertising fees, and in return, received preferential treatment. The core issue in this investigation is whether the advertising fees paid by these companies, which had pending matters such as construction permits, to the third party Seongnam FC constitute bribes.

Previously, the police concluded no charges after investigating for three years and three months from June 2018 to September last year. They examined the flow of funds down to units of one million KRW through voluntarily submitted materials and account analyses but found no causal relationship indicating illicit solicitation or quid pro quo. In this supplementary investigation, the police plan to scrutinize the flow of funds more meticulously than in the previous investigation. The Gyeonggi Nambu Provincial Police Agency, which had only received reports during the earlier investigation, will now support necessary digital forensics and account analyses.

The police are also reportedly focusing on the usage of the approximately 16 billion KRW in advertising fees, which was not confirmed in the previous investigation. Seongnam FC has refused to disclose any information regarding the management of the sponsorship funds despite requests from the Seongnam City Council and others, leaving the exact usage still shrouded in mystery. The possibility of forced investigations such as raids cannot be ruled out in the future.

On the same day, the Gyeonggi Nambu Provincial Police Agency summoned the representative of the Awake Citizens' Solidarity Party (hereafter Awake Citizens Party), who filed a complaint alleging that former candidate Lee and Kim received free legal defense from lawyer Lee and others during the 'Hyekyunggung Kim' case, to question them as the accuser. The 'Hyekyunggung Kim' allegations involve claims that Kim used the Twitter ID 'Hyekyunggung Kim' to defame President Moon Jae-in and others.

The police concluded in November 2018 that Kim was the owner of the Twitter account and forwarded the case to the prosecution with a recommendation for indictment; however, the prosecution dismissed the case due to insufficient evidence. On the 14th, the police also summoned lawyer Jang Young-ha, the accuser in the allegations of misuse of Gyeonggi Province corporate cards and excessive protocol by Kim Hye-kyung, for questioning. A former Gyeonggi Province level 7 public official who blew the whistle on this case is also expected to be questioned as a witness.

This content was produced with the assistance of AI translation services.