▲ Ilkwang Group Chairman Lee Gyu-tae
In 2019, SBS Investigative Reporting Department's End Panda Team reported on suspicions that Lee Kyu-tae, chairman of Ilkwang Group, a heavyweight arms broker, tried to privatize a school corporation he actually owned and to raise slush funds by stealing school expenses.
The prosecution judged that a large part of these allegations were well-founded and referred Chairman Lee to trial.
The Seoul Northern District Prosecutor's Office recently indicted Chairman Lee without detention on four counts: embezzlement, breach of trust, coercion, and obstruction of bidding.
In the indictment obtained exclusively by SBS, it was stated that Chairman Lee was trying to steal tuition from the school affiliated to Ilkwang Academy in order to pay for a fine of 1.4 billion won, which was sentenced to corruption in the defense industry, and attorneys' fees spent during the investigation and trial.
As a result of the prosecution's investigation, it was found that Chairman Lee embezzled 88 million won seven times by disguising the science materials as if they were delivered from Uchon Toddler School affiliated with Ilkwang Academy and returning them in cash.
In addition, it was revealed that while promoting the 'smart school project' at Uchon Elementary School, the bridesmaid companies bid at a reasonable price and signed a contract worth about 2.4 billion won with a pre-selected service company.
During the bidding process, when the parents of the school steering committee strongly objected, the prosecution determined that the bidding was conducted by excluding them and selecting close aides as outside members.
In the indictment, the fact that the faculty and staff oppose the decision of President Lee was put under pressure by mentioning dismissal or disciplinary action was also indicated in the indictment.
After the Panda Team report to the end, investigations by the education office and the police and prosecutors continued, but Chairman Lee has completely denied the allegations, saying they are all groundless.
More details will be delivered on SBS 8pm news tonight (14th).
(Photo = Yonhap News)