Prosecutors and Police Conduct Simultaneous Raids on Sports Organizations

On the 28th, prosecutors launched a search at the Jincheon National Training Center in Chungbuk as part of an investigation into alleged corruption related to contracts awarded by the Korean Sports Council. On the same day, police also executed a search warrant at the Badminton Association of Korea, which operates under the Sports Council. The Seoul Eastern District Prosecutor's Office, led by Chief Prosecutor Lee Sang-hyuk, is investigating the facility management contracts associated with the Jincheon National Training Center, seizing computers and documents from key officials and staff of the Sports Council.

In February of last year, the Sports Council entered into a contract worth 7 billion KRW with Company A for facility management services, including cleaning and security. Despite submitting the highest bid among five competitors, Company A received favorable technical evaluations that allowed it to win the contract. It was later revealed that the CEO of Company A is an alumnus of the same high school as Lee Ki-heung, the president of the Sports Council. An investigation by the Ministry of Economy and Finance's National Subsidy Management Team found that the technical evaluation process was compromised, as six out of eight evaluators were internal personnel from the Sports Council. Following these findings, the Ministry of Culture, Sports and Tourism referred the case to the prosecutors for further investigation.

The allegations extend further, as Company A has been managing the facilities at the Jincheon National Training Center since its opening in 2017, with a total contract value reaching 56 billion KRW over eight years. Additionally, the company secured contracts for the Pyeongchang Winter Training Center (3.38 billion KRW for two years) and the Jangheung Sports Talent Development Center (1 billion KRW for one year). During the bidding for the Sports Talent Development Center, Company A again submitted the highest bid but managed to overturn its low price evaluation through technical scoring.

On the same day, the Songpa Police Station in Seoul also conducted a search at the Badminton Association of Korea located on the third floor of the Olympic Hall, as well as at the headquarters of Yonex Korea in Mapo, a sponsor of the national badminton team. The Olympic Hall houses the Sports Council and its affiliated sports organizations. Furthermore, police searched Kim Taek-kyu, the president of the Badminton Association, who was attending the Yonex Korea Junior Tournament in Miryang, Gyeongnam, seizing his phone and conducting a body search. Investigations revealed that Kim had entered into a purchasing contract for equipment (such as shuttlecocks) necessary for a project receiving 4.2 billion KRW in annual government subsidies, with the sponsor Yonex, and received additional sponsorship in return. It is alleged that Kim directed the allocation of 40 million KRW worth of goods to the Taean Badminton Association, where the head of the association's public project committee is affiliated. The Ministry of Culture, Sports and Tourism referred Kim to the police for investigation on charges of violating subsidy laws, embezzlement, and breach of trust.