Former Ssangbangwool Chairman Kim Seong-tae Detained... "Concerns Over Evidence Tampering and Flight Risk"

[Asia Economy Reporter Kim Hyung-min] Former Ssangbangwool Group Chairman Kim Sung-tae, who was apprehended after living as a fugitive overseas, was detained by the prosecution on the 20th.

Judge Kim Kyung-rok, who is in charge of warrants at the Suwon District Court, issued an arrest warrant for former Chairman Kim around 2 a.m. that day. Judge Kim stated the reason for issuance, saying, "The criminal charges have been substantiated, and there is a risk of evidence destruction and flight." Yang Seon-gil, the current chairman of Ssangbangwool Group, was also detained along with former Chairman Kim.

Former chairman Kim Seong-tae, the real owner of Ssangbangwool Group, who was arrested in Thailand while living as a fugitive abroad, is being escorted through Incheon International Airport on the morning of the 17th. Photo by Kang Jin-hyung aymsdream@

Judge Kim issued the arrest warrants for former Chairman Kim and others after reviewing related records without a hearing procedure. Previously, the hearing scheduled for the afternoon of the previous day was canceled after former Chairman Kim’s side and the prosecution conveyed their intention not to attend the pre-arrest suspect interrogation (warrant substantive examination).

With the custody of former Chairman Kim secured, the prosecution’s investigation into the suspicious financial flows of Ssangbangwool Group is expected to gain momentum. Before indicting former Chairman Kim, the prosecution is likely to summon him daily for questioning to press him on various charges. The prosecution plans to summon former Chairman Kim for the first time after his detention on the same day.

Former Chairman Kim faces charges including embezzlement, breach of trust, violations of the Capital Markets Act and Foreign Exchange Transactions Act, bribery, and obstruction of justice. The cases involve breach of trust and embezzlement amounting to approximately 450 billion KRW, false disclosure of 20 billion KRW convertible bonds violating the Capital Markets Act, remittance of 6.4 million USD to North Korea, bribery of 300 million KRW to former Gyeonggi Province Deputy Governor Lee Hwa-young, instructing employees to replace PCs to destroy evidence, and allegations of paying legal fees for Lee Jae-myung, leader of the Democratic Party of Korea.

The investigation is expected to focus particularly on the possibility that former Chairman Kim created slush funds during the complex transactions involving the issuance and sale of Ssangbangwool Group’s convertible bonds. The prosecution is also reportedly planning to examine the allegations related to Lee Jae-myung’s 'payment of legal fees' through former Chairman Kim, although this was not included in the arrest warrant request.

Former Chairman Kim is cooperating with the investigation without refusing to testify or invoking the right to remain silent. He reportedly admits to some charges such as bribery to former Deputy Governor Lee Hwa-young, obstruction of justice, and remittance to North Korea, but denies the remaining charges including embezzlement and breach of trust.

He is reported to have stated, "Money was lent between affiliates as needed, and while there may have been procedural or legal errors in the process, there was no embezzlement of funds for a specific purpose." He also acknowledged providing a corporate card to former Deputy Governor Lee but claimed there was no quid pro quo, and that the money sent to North Korea was personal funds, not company money. Former Chairman Kim strongly denies the allegations of paying legal fees for Lee Jae-myung, stating that he does not even have contact with Lee.

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