The prosecution indicted a former financial official of underwear maker Ssangbangwool Group on Tuesday for illegally delivering millions of dollars to North Korea for inter-Korean cooperation projects, in a case potentially linked to opposition leader Lee Jae-myung.
The man, identified by his surname Kim, faces multiple charges, including embezzlement, breach of trust, and violations of the foreign exchange transaction act and the capital market act.
He is accused of colluding with former Ssangbangwool Chairman Kim Seong-tae in transferring US$8 million to North Korea through China in 2019 on behalf of Gyeonggi Province when Lee was its governor. Lee currently serves as the chair of the main opposition Democratic Party.
The prosecution suspects that $5 million of the transferred funds was intended for Gyeonggi’s smart farm support program in North Korea, while the remaining amount was meant to facilitate then Gov. Lee’s planned visit to Pyongyang.
Kim Seong-tae was arrested on Jan. 20 and indicted on Feb. 3, while the former aide, Kim’s brother-in-law, was arrested on Feb. 13.
Additionally, the two suspects are accused of embezzling 5.4 billion won ($4.07 million) from group affiliates from 2014 to 2022 and 53.2 billion won from unlisted companies created under the names of group executives from 2019 to 2021.
The former official is also believed to have made false disclosures during three issuances of convertible bonds by group affiliates in 2018 and 2019.
The underwear tycoon and the aide were on the run overseas for months before they were arrested in Thailand on Jan. 10 and in early December, and subsequently brought back to the country in January and February, respectively.
Source: Yonhap News Agency