Underwear boss accused of illegal North Korea remittance to be released on bail

According to the prosecutors' office, Kim Seong-tae of Ssangbangwool paid North Korea $8 million to facilitate the visit of Democratic Party leader Lee Jae-myung to North Korea when he was Gyeonggi governor.

Former Ssangbangwool CEO Kim Seong-tae arrives at Incheon International Airport on Jan. 17, 2023 after being arrested in Thailand where he had stayed for eight months. [YONHAP]

Former underwear company owner Kim Seong-tae, who has been on trial for an illegal remittance to North Korea, was released on bail after spending 11 months in custody.

The Suwon District Court approved his release on Tuesday with the condition of posting a 100 million won ($74,600) bail and wearing a tracking device at all times.

Kim was initially arrested on Feb. 3, 2023, following indictments by the prosecutors' office for charges including embezzlement, breach of trust, and violating the foreign exchange transaction act.

The former CEO of the underwear company Ssangbangwool is accused of embezzling 53.8 billion won from five unlisted subsidiaries.

However, Kim is more widely recognized for standing trial regarding the $8 million that he had given to North Korea in 2019.

According to the prosecutors' office, Kim made the payment to facilitate the visit of Democratic Party leader Lee Jae-myung to North Korea.

Lee, who was the Gyeonggi governor at the time, was excluded from then President Moon Jae-in's entourage, which included Seoul Mayor Park Won-soon and Gangwon governor Choi Moon-soon, during a visit to Pyongyang to meet with North Korean leader Kim Jong-un.

Kim had requested bail on Dec. 20, citing no risk of flight or evidence tampering.

BY LEE HO-JEONG [lee.hojeong@joongang.co.kr]