The Central District Prosecutors' Office Violent Crimes Division Leading the "War on Drugs and Gangs" Declared by Han Dong-hoon

Prosecutor's flag hanging in front of the Central District Prosecutors' Office in Seocho-dong, Seoul [Photo by Yonhap News]

[Asia Economy Reporter Kim Hyung-min] Four months have passed since Han Dong-hoon, Minister of Justice, declared a 'war' against drugs and organized crime. The Violent Crime Investigation Division (hereinafter referred to as the Violent Crime Division) of the Seoul Central District Prosecutors' Office is at the forefront of this effort. Over the past four months, they have been vigorously investigating major drug and organized crime cases. The Violent Crime Division was originally integrated with the Anti-Corruption Investigation Division during the previous administration. However, after Minister Han took office, the division was separated following an organizational restructuring and personnel changes in June. While the legal community focused on the independence of the Anti-Corruption Investigation Division, a direct investigation unit, the Violent Crime Division has been playing a key role with remarkable activity.

Shin Junho, the chief prosecutor leading the division, is known as a 'violent crime expert' and a 'tough prosecutor.' From August 2019 to September 2020, he worked at the Gwangju District Prosecutors' Office Violent Crime Division, and from July 2021 until last July at the Incheon District Prosecutors' Office Violent Crime Division, where he dismantled numerous violent organizations dominating the region, earning a notorious reputation among gangsters. He also served as head of the Narcotics Organized Crime Division at the Supreme Prosecutors' Office from September 2020 to July 2021, making him a specialist in drug investigations. Attention is focused on whether the efforts of him and the Violent Crime Division will expose the true nature of drug and organized crime activities that have long been hidden behind a veil of secrecy.

▲Drug Distribution Agents and Supply Routes, Growing 'Drug Scandals' Among Influential Figures

The Violent Crime Division's investigations have revealed the drug use status of influential figures in detail. The social repercussions are showing signs of spreading widely under the name of 'scandals.' Chief Prosecutor Shin is personally demonstrating his expertise in drug investigations.

On the 20th, the Violent Crime Division obtained an arrest warrant from the court for Hong Mo, the grandson of the late Hong Jong-yeol, founder of the mid-sized steel company Korea Steel. The division arrested Hong at his home on the night of the 17th and is currently investigating him. This follows the arrest of Hong Mo (40), grandson of the founder of Namyang Dairy Products, on the 15th of last month, marking consecutive successful detentions. On the 30th of last month, the division also indicted Jo Mo (39), third-generation member of the Beomhyo family, and Lim Mo (38), son-in-law of the former chairman of JB Financial Group, without detention on charges of marijuana purchase and smoking. Most of these individuals are directly or indirectly connected, receiving or purchasing drugs through the same distributors and routes, and exchanging collected information. As the prosecution's investigation net tightens, the number of those surrendering themselves is expected to increase. Recently, three people, including the son of former National Police Agency chief Kim Mo and office worker A, surrendered to the Violent Crime Division. As of this day, a total of 13 suspects are either on trial or under investigation related to drug cases.

Prosecutor's Drug Investigation [Graphic=Asia Economy]

▲Intensified Investigation into Violent Organization 'Sunoa Faction,' Targeting KH Group

The investigation into organized crime cases is also gradually expanding. In particular, attention is being paid to the 'Grand Hyatt Seoul Disturbance Incident' that occurred in October 2020. About ten members of the 'Sunoa Faction,' considered one of the top ten violent organizations in Korea, stayed at the hotel for three days, forcibly ending a live band performance and causing disturbances by threatening guests at the front desk and gym. The Violent Crime Division reportedly intensified the investigation after arresting and indicting a member of the organization's action squad, A, on the 8th.

The investigation appears to be targeting KH Group, drawing attention from the business and legal communities. KH Group is the actual owner who acquired the Grand Hyatt Seoul in December 2019 for about 600 billion KRW in partnership with a private equity fund. During the disturbance, Sunoa Faction members shouted in the hotel lobby, calling out the name of KH Group Chairman Bae Sang-yoon, demanding "Pay back 6 billion KRW." The prosecution, having taken over the case from the police who completed the initial investigation, suspects the involvement of a third party who instigated the hotel disturbance. Suspicious financial flows have also been identified, leading to an expansion of the investigation. A prosecution official stated, "It is still too early to confirm a connection between KH Group and the incident," but added, "As we examine the background of the disturbance, there is room to investigate financial relationships and money flows," not ruling out the possibility of investigating KH Group.

Grand Hyatt Seoul
Photo by Grand Hyatt Seoul

In addition to this case, the Violent Crime Division is investigating the 'Bid Interference in the Sale of Pyeongchang Alpensia Resort' case involving KH Group, which was transferred from the Chuncheon District Prosecutors' Office on the 25th of last month. Gangwon Development Corporation sold the Alpensia Resort to KH Gangwon Development Co., Ltd. for 711.5 billion KRW last June through a competitive bidding process. However, it was revealed that both companies participating in the bid were subsidiaries under KH Group, raising suspicions of prior coordination between Gangwon Province and KH Group.

Under increasing prosecutorial pressure, KH Group appears to be preparing countermeasures. According to insiders, Chairman Bae is currently staying in Hawaii, USA, monitoring the prosecution's movements. Recently, he reportedly summoned many associates to Hawaii to discuss future plans. There are rumors that Park Chan-ho, former chief prosecutor of Gwangju District Prosecutors' Office and a close aide of President Yoon Seok-yeol within the prosecution, is defending Chairman Bae. Given that a high-profile legal team has been assembled, there is speculation that Chairman Bae will soon return to Korea.

KH Group is proceeding with the sale of the Grand Hyatt Seoul, the site of the incident, and related procedures. Although the sale process began in earnest after discussions with Blue Cove Asset Management, the preferred negotiation partner, in September, it has not yet been finalized. The sale is estimated to be around 1 trillion KRW. KH Group originally acquired the Grand Hyatt Seoul for about 600 billion KRW as part of a consortium, so it is expected to gain a profit of at least 300 to 400 billion KRW from the sale. The prosecution, which is scrutinizing KH Group's overall internal financial flows, is likely to closely monitor this transaction as well.

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