[Exclusive] KH Baesangyun Considered Acquiring Seongnam FC in August Last Year... Prosecutors Investigate Funds

It has been confirmed that Bae Sang-yoon, chairman of KH Group, who is currently evading prosecution overseas amid a prosecution investigation into the 'Pyeongchang Alpensia Resort bid interference' case, was considering acquiring the Seongnam FC professional football team last August.

Seongnam FC Clubhouse, Seongnam-si, Gyeonggi-do [Image source=Yonhap News]

원본보기 아이콘

According to a comprehensive report by Asia Economy on the 2nd, KH Group actively considered acquiring Seongnam FC following an interview with Seongnam Mayor Shin Sang-jin last August, in which he stated that "not only the sale and relocation of the team but also its dissolution are being considered." Chairman Bae halted his acquisition attempt, apparently due to the prosecution's intensified investigation into the team amid the 'Seongnam FC illegal sponsorship' case involving Lee Jae-myung, leader of the Democratic Party of Korea. At that time, Chairman Bae was staying in Hawaii, USA.

In business and legal circles, there are talks that Chairman Bae is seeking ways to evade the prosecution after they began tracking KH Group's financial flows. Chairman Bae left for Hawaii in June last year, when the prosecution investigation was intensifying, citing business reasons such as resort acquisition, and has since been moving between Japan, Thailand, and other countries. During this period, it is reported that he attempted to destroy evidence and coordinated statements with company officials. In July last year, while in Hawaii, he reportedly summoned vice-chairman-level executives of the group to the resort where he was staying to ensure their silence in preparation for the prosecution's investigation.

The Violent Crime Investigation Division of the Seoul Central District Prosecutors' Office (Chief Prosecutor Shin Jun-ho) recently confirmed these circumstances while investigating Chairman Bae's aides who returned to Korea and issued an Interpol red notice at the end of last month.

KH Group is currently under simultaneous investigation by three prosecution offices, including the Seoul Central District Prosecutors' Office. The Violent Crime Investigation Division is examining allegations of 'Alpensia bid interference.' This involves claims that during the sale of Alpensia Resort in July 2021, Gangwon Development Corporation (GDC) and KH Gangwon Development, a special purpose company under KH Group that became the final successful bidder, colluded in advance on the bid. Chairman Bae is suspected of causing losses amounting to 400 billion KRW to affiliates and embezzling approximately 60 billion KRW of company funds during this process. The Suwon District Prosecutors' Office is additionally investigating KH Group's involvement in the Ssangbangwool Group's 'North Korea remittance' allegations. The Seoul Southern District Prosecutors' Office is pursuing suspicions that KH Philux manipulated stock prices using information related to the development and approval of COVID-19 treatments from 2020 to 2022 through bio companies in which it holds shares. All these investigations make it inevitable to question Chairman Bae. Meanwhile, Chairman Bae and KH Group have stated, "We will complete the matters as soon as possible and return to cooperate actively with the investigation."

Upon Chairman Bae's return, the police, who have obtained an arrest warrant related to the 'Alpensia bid interference' case, plan to arrest him first, investigate, and then hand him over to the prosecution. Subsequently, the Seoul Central District Prosecutors' Office will lead the investigation, followed by the Suwon and Seoul Southern District Prosecutors' Offices.

Regarding this, a KH Group official denied related allegations, stating, "Since KH Group has been under investigation since 2021 regarding Ssangbangwool convertible bonds and is a subject of investigations related to 'Lee Jae-myung's attorney fee payment' and the 'Daejang-dong' allegations, it is nonsensical to claim that we considered acquiring Seongnam FC, which was a major source of the suspicions against Lee."

He added, "In August last year, KH Group was already operating the Goyang KH Football Club and was preparing to apply for the establishment of a professional football team based in Goyang City. However, we officially withdrew our intention due to financial difficulties before even undergoing the evaluation by the screening committee. It is completely illogical that a company struggling financially with its existing football team would consider acquiring a professional football team in another region."

© The Asia Business Daily(www.asiae.co.kr). All rights reserved.