Prosecutors Seek Arrest Warrant for KH Group Vice President in Alpenzia Bid Rigging Case

The prosecution investigating the 'Pyeongchang Alpensia Resort bidding interference' case involving KH Group has moved to secure the custody of an executive in charge of fund management.

View in front of KH Construction office, Gangnam-gu, Seoul.
[Image source=Yonhap News]

According to the legal community on the 17th, the Violent Crime Investigation Division of the Seoul Central District Prosecutors' Office (Chief Prosecutor Shin Junho) filed an arrest warrant on the 14th against Kim, the Executive Vice President of KH Group (49), on charges of embezzlement, breach of trust, and bidding interference under the Act on the Aggravated Punishment of Specific Economic Crimes.

According to the prosecution, Vice President Kim, who oversees KH Group's financial affairs, is suspected of using approximately 65 billion KRW of company funds to repay personal debts of Chairman Bae Sang-yoon or to pay credit card bills under the chairman's instructions.

After mobilizing about 400 billion KRW of affiliate funds in 2021 to acquire the Alpensia Resort, there are also allegations that Chairman Bae's nominee company acquired the resort, causing losses to the affiliates, and that they used 'front' companies in the bidding process or utilized confidential information such as the planned sale price received from Gangwon Province.

The prosecution emphasized that the charges against Vice President Kim "shake the foundation of the free market economy order and constitute acts of privatizing a corporation." The arrest warrant also states that these crimes were carried out under Chairman Bae's instructions.

Chairman Bae left for Southeast Asia citing business reasons and has not returned. The prosecution obtained an arrest warrant for Chairman Bae and issued an Interpol red notice, and the Ministry of Foreign Affairs has also invalidated Chairman Bae's passport.

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