Detention warrant applied for ex-SBW boss

Kim Seong-tae, former chairman of SBW Group [YONHAP]

Prosecutors on Thursday applied for a pre-trial detention warrant for the former chairman of SBW Group after grilling him for nearly 25 hours about corruption.

A court is expected to decide either late Thursday or early Friday whether to detain the 55-year-old Kim Seong-tae.

Kim, who arrived at Incheon International Airport on Tuesday morning after eight months on the lam, skipped a court hearing that was meant to review his pre-trial detention warrant, effectively forgoing a chance to defend himself and argue his way out of detention.

A spokesperson for Kim told the press that the decision mirrored Kim’s “self-reflection” and intention to “faithfully” respond to the prosecution’s probe.

A court will determine whether to issue the warrant based on evidence submitted by prosecutors.

In their application, prosecutors from the Suwon District Prosecutors’ Office described Kim as having allegedly embezzled SBW funds, abandoned his duties as the company’s chairman, smuggled foreign currency out of the country to give to North Korea, bribed the former vice Gyeonggi governor and failed to report to financial authorities SBW’s shady transactions involving convertible bonds.

Prosecutors, however, said they did not include the charge that prompted the investigation into the businessman – that he paid Democratic Party (DP) Chairman Lee Jae-myung’s legal fees when the politician was tried in court for election law violation.

Prosecutors said they were planning to zero in on that issue after detaining Kim on charges that were more solid.

Kim was questioned for 13 hours on Tuesday right after he arrived in Korea. On Wednesday, he was grilled for 12 hours more.

Yang Seon-gil, current chairman of SBW Group, who was nabbed with Kim last week on a golf course in Thailand, also returned to Korea on Tuesday and went through questioning. Prosecutors sought a pre-trial detention warrant for Yang as well, describing him as an accomplice in Kim’s alleged dereliction of duty and embezzlement .

Yang and Kim are cousins.

During a phone interview with the JoongAng Ilbo on Thursday, a spokesperson for Kim who spoke on the condition of anonymity admitted that SBW Group subsidiaries sold and purchased convertible bonds among themselves, but denied the process was to financially benefit Kim.

On accusations of sending cash to North Korea during the former Moon Jae-in administration, the spokesperson admitted the process was “illegal” but said it was to enhance cooperation with the North “in line with the government’s emphasis on South-North cooperation.”

BY LEE SUNG-EUN [lee.sungeun@joongang.co.kr]