Ex-Ssangbangwool chief indicted for illegally sending millions of dollars to N. Korea

The prosecution indicted an underwear tycoon Friday 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.

Kim Seong-tae, former chairman of underwear maker Ssangbangwool Group, is suspected of transferring US$8 million to North Korea via China in 2019 on behalf of Gyeonggi Province.

Kim was nabbed in Thailand on Jan. 10 after months on the run. He was brought to the country on Jan. 17 and formally arrested on Jan. 20.

The businessman faces multiple charges that include bribery, embezzlement, breach of trust, and violations of the foreign exchange transaction act and the political fund act.

The prosecution in Suwon, 34 kilometers south of Seoul, suspects that of the $8 million, $5 million was delivered to support a smart farm project in North Korea and the remainder was intended to facilitate then Gov. Lee’s planned visit to the North. Lee is now chairman of the main opposition Democratic Party.

The prosecution is investigating whether the payment was made in return for the Gyeonggi government’s promises of business favors and support for Ssangbangwool in connection with future cooperation projects with North Korea.

Lee has denied the allegations, claiming the investigation is politically motivated.

Kim is also accused of providing 330 million won (US$265,437) in illegal political funds to Lee Hwa-young, former vice Gyeonggi governor and a close confidant of the opposition leader, in the forms of a corporate credit card and luxury vehicles between 2018 and 2022. Lee was arrested in September and indicted the following month.

In addition, Kim is suspected of embezzling 4.3 billion won from group affiliates from 2014 to 2022 and 59.2 billion won from unlisted companies created under the names of group executives from 2019 to 2021.