Prosecutors Conduct Joint Search of KH Group Over Allegations of Alpenzia Bid Interference and Funds Transfer to North Korea (Comprehensive)

Seoul Central District Prosecutors' Office Photo by Yonhap News

[Asia Economy Reporter Kim Hyung-min] The prosecution, investigating allegations of bid interference involving KH Group's Pyeongchang Alpensia Resort, has begun full-scale compulsory investigations.

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 documents.

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, it was revealed that both companies participating in the bid were 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 bid collusion suspicions and urged the Gangwon Provincial Police in August last year to investigate bid interference allegations. The Seoul Central District Prosecutors' Office, which has jurisdiction over KH Group's Seoul headquarters, received the case from the Chuncheon District Prosecutors' Office, which had been investigating it first, at the end of last month.

Meanwhile, the Suwon District Prosecutors' Office, investigating allegations of remittances to North Korea by Ssangbangwool Group, suspects that KH Group supported remittances to secure North-South cooperation business rights and is currently securing accounting documents and inter-Korean exchange cooperation project materials during the search and seizure conducted on the same day.

After analyzing the materials secured during the search and seizure, the two prosecution offices are expected to summon key related persons as suspects for investigation following witness interviews. KH Group Chairman Bae Sang-yoon is currently staying overseas and is wanted. He is also known to have a close business relationship with former Ssangbangwool Group Chairman Kim Sung-tae, who is on the run abroad.

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