Prosecutors Conduct Search and Seizure on KH Group and Choi Moon-soon for 'Alpensia Bid Interference'

Alpensia Resort

[Asia Economy Reporter Kim Hyung-min] The prosecution, investigating allegations of bid-rigging by KH Group regarding the Pyeongchang Alpensia Resort, has begun a full-scale forced investigation.

The Seoul Central District Prosecutors' Office's Violent Crime Investigation Division (Chief Prosecutor Shin Junho) dispatched prosecutors and investigators on the morning of the 27th to about 20 locations, including offices of KH Group affiliates, residences of related individuals, the residence of former Gangwon Province Governor Choi Moon-soon, and Gangwon Development Corporation, to secure bid-related materials.

Gangwon Development Corporation (GDC) sold the Alpensia Resort to KH Gangwon Development Co., Ltd., a special purpose company under KH Group, for 711.5 billion won through a competitive bidding process in June last year. Subsequently, both companies that participated in the bid were revealed to be affiliates of KH Group, raising suspicions of collusion. The Gangwon Peace Economy Research Institute filed a petition with the Fair Trade Commission in July last year regarding the bid-rigging suspicions and urged the Gangwon Provincial Police in August last year to investigate allegations of bid obstruction. The Seoul Central District Prosecutors' Office, which has jurisdiction over KH Group's Seoul headquarters, received the case at the end of last month from the Chuncheon District Prosecutors' Office, which had been investigating it first.

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