The former CEO of Kangwon Land in South Korea is under arrest for supposed influence peddling, the Korea Times reports.
On November 30, Chuncheon District Court in Gangwon Province ordered the arrest of Choi Heung-jip, citing the risk of destruction of evidence. Dozens of suspects who allegedly asked Choi for favors are expected to be questioned by the prosecution.
Asia Gaming Brief reports that in 2015 it was first alleged that a large number of people hired between 2012 and 2013 were well-connected to politicians and the former CEO. Some allegedly were unqualified or under-qualified for the work they were hired to do. The initial case was closed when prosecutors indicted the CEO and a human resources executive.
In September, however, the ruling Democratic Party demanded that the case be reopened. An arrest warrant has been issued for the secretary of Rep. Yeom Dong-yeol, who allegedly blackmailed a company official who was not cooperating with them.
Kangwon Land Inc. is the only casino operator in South Korea authorized to offer locals gambling. Choi Heung-jip reportedly led the state-run operation from mid-2011 to early 2014.
Almost two dozen jobs candidates from that period have reportedly filed a damages suit against Kangwon Land, alleging the company used them to make the recruitment processes of the company seem fair when they were not.
South Korea’s opposition Justice Party has criticized the handling of the earlier case, claiming there was a cover up.
In a November filing to the Korea Exchange, Kangwon Land said net income down 8.1 percent year-on-year for the first nine months of 2017.
