Prosecutors Arrest Former Lotte Construction Executive for Giving 100 Million Bribe to Busan Research Institute Researcher... In Exchange for 'Project Contract' Request

Seoul Central District Prosecutors' Office, Seocho-dong, Seoul.
Photo by Seokjin Choi

[Asia Economy Reporter Choi Seok-jin, Legal Affairs Specialist] A former executive of Lotte Construction was arrested on charges of bribing a researcher affiliated with the Busan Research Institute, a policy research organization, along with a request for business contract acquisition.

The Anti-Corruption and Strong Investigation Division 2 of the Seoul Central District Prosecutors' Office (Chief Prosecutor Jo Ju-yeon) announced on the 30th that former Lotte Construction executive Mr. A was arrested last week on charges of bribery.

According to the prosecution, Mr. A is accused of providing bribes amounting to over 100 million won to researcher Mr. B, who was in charge at the Busan Research Institute, the evaluation agency for Busan City's "Sewer Pipeline Maintenance Project," in 2015 while working as an executive at Lotte Construction, under the pretext of requesting the business contract.

The Busan Research Institute, a policy research organization, is known to have been responsible for conducting preliminary feasibility studies and selecting companies for the sewer maintenance projects on behalf of Busan City every year.

After obtaining intelligence on the related crime, the prosecution is reported to have conducted investigations including questioning related personnel from Busan City, Busan Research Institute, and Lotte Construction, as well as tracing bank accounts.

Busan City has been carrying out the sewer pipeline maintenance project across the entire city in eight phases since 2011, with each phase reportedly requiring a budget of approximately 80 billion won.

The consortium led by Lotte Construction won the project rights four times in 2011, 2014, 2017, and 2019, and participated in six out of eight phases, including two times in 2013 and 2015 as a co-lead with Kumho Construction.

During the prosecution's investigation, researcher Mr. B admitted to the bribery charges, whereas Mr. A denied giving bribes, leading the prosecution to request an arrest warrant and secure his custody.

The prosecution is investigating with the possibility in mind that there was an organized directive or involvement from the top management of Lotte Construction behind Mr. A's bribery.

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