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[Asia Economy Reporters Heo Kyung-jun and Kim Dae-hyun] Former Gyeonggi Province Deputy Governor for Peace Lee Hwa-young will appear before the prosecution on the 22nd for a second investigation regarding the Ssangbangwool Group's alleged 'remittance to North Korea.' The North Korea remittance suspicion is drawing significant attention as it is also linked to Lee Jae-myung, leader of the Democratic Party of Korea, who recently had an arrest warrant requested in connection with the Daejang and Wirye development projects and the Seongnam FC sponsorship fund allegations.

The Criminal Division 6 of Suwon District Prosecutors' Office (Chief Prosecutor Kim Young-nam) summoned former Deputy Governor Lee in the morning for questioning and plans to conduct a confrontation investigation with former Ssangbangwool Group Chairman Kim Seong-tae and others starting in the afternoon.

Former Gyeonggi Province Deputy Governor for Peace Lee Hwa-young [Image source=Yonhap News]

The prosecution continues its investigation even after requesting an arrest warrant for Lee Jae-myung. The Seoul Central District Prosecutors' Office is investigating the Baekhyeon-dong development allegations, while the Suwon District Prosecutors' Office is probing the North Korea remittance and suspicions that Ssangbangwool Group paid legal fees for Lee’s violation of the Public Official Election Act. Additionally, the Seongnam Branch is conducting further investigations related to the Seongnam FC sponsorship funds and preferential treatment allegations in the Jeongja-dong hotel development.

Among the various allegations surrounding Lee, the North Korea remittance suspicion is progressing at the fastest pace. The investigation team increased pressure on former Deputy Governor Lee by conducting a search and seizure at the Gyeonggi Provincial Government Secretary’s Office and other locations this morning. The prosecution believes that Kim, the former chairman, handed over a total of $5 million to the North Korean side in response to Lee’s request for North Korea-related projects Lee was promoting as Gyeonggi Province Governor?$2 million in January 2019 and $3 million in April 2019. They also suspect that $3 million was sent in November-December of the same year to facilitate Lee’s visit to North Korea.

The North Korea remittance investigation has gained momentum as former Chairman Kim, who initially refused to testify, recently changed his stance and began cooperating. Based on Kim’s statements, the investigation team identified specific circumstances and conducted a confrontation investigation on the 15th of this month with former Deputy Governor Lee and former Chairman Kim.

During the confrontation investigation, Kim, Ahn Bu-su (Chairman of the Asia-Pacific Peace Exchange Association), and Bang Yong-chul (Vice Chairman of Ssangbangwool Group) reportedly testified that Gyeonggi Province first requested them to cover the funds to be sent to North Korea. In contrast, former Deputy Governor Lee reportedly stated that Ssangbangwool sent money to North Korea for its own business and that it was unrelated to Gyeonggi Province.

However, attention is focused on whether former Deputy Governor Lee will change his previous stance of denial, as he recently expressed willingness to "cooperate sincerely" with the prosecution’s investigation.

Former Chairman Kim Seong-tae of Ssangbangwool Group, who was caught in Thailand while on the run abroad, is returning to Korea through Incheon International Airport Terminal 1. Photo by Kang Jin-hyung aymsdream@

Meanwhile, the Criminal Division 11 of Suwon District Court (Presiding Judge Shin Jin-woo) will hold the first trial of former Chairman Kim on the 23rd at 10 a.m. as a pretrial conference. Yang Seon-gil, Chairman of Ssangbangwool, who was indicted and detained on charges including embezzlement and breach of trust, will also stand trial together.

The pretrial conference is a procedure to hear opinions from both the prosecution and defense and to establish plans for evidence admission and proof, and the defendant is not required to attend. However, there is a possibility that former Chairman Kim may appear in court to state his position.

Given the numerous charges applied, including violations of the Foreign Exchange Transactions Act, bribery, violations of the Political Funds Act, embezzlement, and breach of trust, and the expectation that dozens of witnesses will be called during the trial, multiple pretrial conferences may be held. Former Chairman Kim has appointed 17 defense attorneys, including Yoo Jae-man, a former special prosecutor from the law firm Kwangjang (Judicial Research and Training Institute class 16).

The prosecution stated in the indictment that former Chairman Kim received a request from former Deputy Governor Lee to cover the smart farm costs to North Korea, warning that if the payment was not made, future North Korea projects in Gyeonggi Province would become difficult, and that Ssangbangwool Group should support the smart farm costs on behalf of Gyeonggi Province.

The cases of former Deputy Governor Lee (bribery acceptance) and Ssangbangwool Vice Chairman Bang Yong-chul (bribery offering), who were indicted earlier, are also being separately heard by the same court. The 15th trial session for former Deputy Governor Lee is scheduled for the 24th.

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