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Korea Herald
23-07-2025
- Politics
- Korea Herald
Probe targets alleged link between Mongolia operation, martial law
South Korea's special counsel is investigating a covert operation conducted by the military in Mongolia in November, in which two intelligence officers allegedly attempted to contact North Korean officials shortly before former President Yoon Suk Yeol declared martial law. The special counsel suspects that the operation was designed to provoke North Korea or to open a line of communication that could serve as justification for Yoon to declare martial law. According to local daily Hankyoreh on Wednesday, two Korea Defense Intelligence Command officers — a lieutenant colonel and a major — were deployed to Ulaanbaatar, Mongolia, where they attempted to approach the North Korean Embassy through Mongolian officials. They had been tasked with gathering intelligence on North Korea, and their mission report reportedly listed the North Korean Embassy as a target. The officers were detained by Mongolian intelligence authorities during the operation and were released after then-KDIC commander Gen. Moon Sang-ho traveled to Mongolia to request their release. Moon was suspended in December over his alleged involvement in the martial law plan. The KDIC has long been linked to the broader martial law scheme. However, no concrete evidence has been found to prove its direct involvement, apart from its ties to Noh Sang-won, who was arrested in December on charges of orchestrating the plan. Noh reportedly received a list of 46 intelligence officers from Gen. Moon in October 2024. A notebook seized from Noh contained phrases such as 'induce the North's attack at NLL' and 'waste balloon,' which investigators believe suggest attempts to fabricate a security crisis in the lead-up to the Dec. 3 declaration. If such intent from the KDIC is discovered through the special counsel investigation, officials responsible for the actions could be subject to charges of treason. Under Article 93 of the Criminal Act, treason refers to acts of colluding with foreign powers to initiate war or armed rebellion against the country. As of press time, the Ministry of National Defense has not commented on the investigation. When reports about the Mongolia operation first surfaced in late 2024, the ministry denied any connection between the trip and preparations for martial law. The investigation into the Mongolia operation is unfolding alongside suspicions of a similar effort to provoke the North: a drone mission carried out by the military in early October 2024. Testimony obtained by the special counsel indicates that former Defense Minister Kim Yong-hyun ordered the Drone Operations Command to fly an unmanned aircraft toward North Korea in October 2024. According to transcripts, Joint Chiefs of Staff Operations Director Lt. Gen. Lee Seung-oh testified that Kim personally directed the missions, rerouting drones to areas such as Nampo and regions north of the East Sea's Northern Limit Line. Military personnel testified that the drone flights took place on Oct. 3, 9 and 10. On Oct. 11, North Korea's Foreign Ministry issued a statement claiming that South Korean drones had flown over Pyongyang and dropped anti-regime leaflets. The special counsel later sought an arrest warrant for former Drone Operations Commander Kim Yong-dae on charges of forging military documents to conceal the mission. However, the court rejected the request on Monday, citing insufficient grounds for detention. The investigation team is reviewing the court's decision and considering whether to refile the request.
Korea Herald
23-07-2025
- Politics
- Korea Herald
Special counsel looks into ties between covert operation in Mongolia, 2024 martial law
South Korea's special counsel is investigating a covert operation conducted by the military in Mongolia in November, in which two intelligence officers allegedly attempted to contact North Korean officials shortly before former President Yoon Suk Yeol declared martial law. The special counsel suspects that the operation was designed to provoke North Korea or to open a line of communication that could serve as justification for Yoon to declare martial law. According to local daily Hankyoreh on Wednesday, two Korea Defense Intelligence Command officers — a lieutenant colonel and a major — were deployed to Ulaanbaatar, Mongolia, where they attempted to approach the North Korean Embassy through Mongolian officials. They had been tasked with gathering intelligence on North Korea, and their mission report reportedly listed the North Korean Embassy as a target. The officers were detained by Mongolian intelligence authorities during the operation and were released after then-KDIC commander Gen. Moon Sang-ho traveled to Mongolia to request their release. Moon was suspended in December over his alleged involvement in the martial law plan. The KDIC has long been linked to the broader martial law scheme. However, no concrete evidence has been found to prove its direct involvement, apart from its ties to Noh Sang-won, who was arrested in December on charges of orchestrating the plan. Noh reportedly received a list of 46 intelligence officers from Gen. Moon in October 2024. A notebook seized from Noh contained phrases such as 'induce the North's attack at NLL' and 'waste balloon,' which investigators believe suggest attempts to fabricate a security crisis in the lead-up to the Dec. 3 declaration. If such intent from the KDIC is discovered through the special counsel investigation, officials responsible for the actions could be subject to charges of treason. Under Article 93 of the Criminal Act, treason refers to acts of colluding with foreign powers to initiate war or armed rebellion against the country. As of press time, the Ministry of National Defense has not commented on the investigation. When reports about the Mongolia operation first surfaced in late 2024, the ministry denied any connection between the trip and preparations for martial law. The investigation into the Mongolia operation is unfolding alongside suspicions of a similar effort to provoke the North: a drone mission carried out by the military in early October 2024. Testimony obtained by the special counsel indicates that former Defense Minister Kim Yong-hyun ordered the Drone Operations Command to fly an unmanned aircraft toward North Korea in October 2024. According to transcripts, Joint Chiefs of Staff Operations Director Lt. Gen. Lee Seung-oh testified that Kim personally directed the missions, rerouting drones to areas such as Nampo and regions north of the East Sea's Northern Limit Line. Military personnel testified that the drone flights took place on Oct. 3, 9 and 10. On Oct. 11, North Korea's Foreign Ministry issued a statement claiming that South Korean drones had flown over Pyongyang and dropped anti-regime leaflets. The special counsel later sought an arrest warrant for former Drone Operations Commander Kim Yong-dae on charges of forging military documents to conceal the mission. However, the court rejected the request on Monday, citing insufficient grounds for detention. The investigation team is reviewing the court's decision and considering whether to refile the request.
Korea Herald
07-05-2025
- Business
- Korea Herald
Money wired to dead person by mistake; police unable to track down inheritors
Busan police on Wednesday said they recently closed a case on tracking down and recovering money that was mistakenly transferred to the account of a deceased person, after they failed to track down two of the three offspring of the departed account holder. The incident occurred in March when an employee of a firm in North Jeolla Province wired 3.2 million won ($2,290), intended for a client to the bank account of a person who died five years ago, according to the Busan Saha Police Station, which has jurisdiction in Saha-gu, Busan, where the deceased was previously was. Investigators learned that three children of the deceased had been listed as inheriting heirs, but failed to make contact with two of them. South Korean law states that the financial account of a dead person is to be frozen and withdrawals of the balance are possible only with the consent of all inheritors. Officials were unable to withdraw the mistakenly wired money and closed the case on April 23. The person who made the transfer in error was notified of systems to apply for mistakenly transferred fees by the bank and the Korea Deposit Insurance Corp. The KDIC can help recover wired funds of between 50,000 and 100 million won in cases where the transfer was made within one year of application.
Korea Herald
16-03-2025
- Business
- Korea Herald
Seoul Guarantee Insurance marks strong Kospi debut despite market concerns
Insurer concludes first trading day with a 23% gain over debut price Seoul Guarantee Insurance, South Korea's leading guarantee insurer, marked a strong debut on the local stock market Friday, defying concerns over a market slowdown and potential overvaluation. According to the Korea Exchange, SGI closed its first trading day at 32,000 won ($22) per share, a 23 percent gain from its offering price of 26,000 won. The stock opened with a 7.88 percent gain and briefly reached an intraday high of 32,150 won. The debut rally surprised many, as market sentiment had been largely subdued ahead of the offering. The price was set at the lower end of its target range, following disappointing demand forecasts from institutional investors and lackluster results during the actual public subscription. Concerns over weak investment sentiment, coupled with the lack of new shares issued, were expected to deter investor participation in the IPO. Issues of overvaluation also persisted, despite the company reducing its size from over 3 trillion won from its initial target during its first IPO attempt in 2023. However, SGI's emphasis on shareholder returns appears to have resonated with investors. The company positioned itself as a dividend stock, targeting long-term investors with a three-year plan to distribute 2 trillion won annually in dividends. The insurer also confirmed a 2024 year-end dividend of the same amount, offering a compelling incentive for investors, as those holding shares through April will qualify for the payout, which is estimated to be around 11 percent of the offering price. SGI, the only comprehensive guarantee insurance provider in Korea, now boasts a market capitalization of 2.23 trillion won, ranking 144th on the Kospi and fifth among insurance stocks. Meanwhile, SGI's listing primarily aimed to facilitate the exit of its largest shareholder, the Korea Deposit Insurance Corporation, which has left around 5 trillion won in public funds to be recovered from its investment in the insurer. All publicly offered SGI shares came from KDIC's stake, with the corporation estimated to have recouped 181.5 billion won through the IPO. KDIC now holds approximately 83.85 percent stake in SGI.
Korea Herald
19-02-2025
- Business
- Korea Herald
SGI targets W2tr Kospi debut in March
South Korea's top guarantee insurer shows confidence in its second shot at market debut Seoul Guarantee Insurance is set to list on South Korea's benchmark Kospi next month, pitching itself as a stable dividend play to long-term investors. 'Through this listing, we aim to strengthen our position as the sole comprehensive guarantee insurer in the country and establish ourselves as a leading dividend stock with a more proactive shareholder return policy in partnership with market investors,' SGI President and CEO Lee Myung-soon said during a press meeting in Seoul on Wednesday. Founded in 1969 as Korea Fidelity & Surety, SGI maintains a dominant position in the local market, offering a broad range of guarantee and surety products for both corporate and individual clients. It also has a presence overseas, with a branch in Vietnam and an office in Indonesia, key locations where domestic companies are conducting business. For its upcoming IPO, SGI has set a target price range of 26,000 won to 31,800 won ($18 to $22) per share, valuing the company at up to 2.22 trillion won. The valuation benchmarks major nonlife insurers, including Samsung Fire & Marine and Hyundai Marine & Fire. This move marks SGI's second attempt at an IPO after shelving its initial bid last year, when it sought a valuation exceeding 3 trillion won with a price range of 39,500 won to 51,800 won per share. A key driver for the listing is the planned exit of Korea Deposit Insurance Corp., which owns 93.85 percent of SGI and has about 5.6 trillion won invested in SGI that is yet to be recouped. As in its previous IPO attempt, SGI will not issue new shares, with all 6,982,160 shares on public offer coming from KDIC's holdings -- meaning the proceeds will go directly to the major shareholder. SGI is positioning itself as a reliable dividend stock, underpinned by its dominant market position. It has paid dividends for 13 consecutive years, with an average payout ratio of 53 percent -- higher than the 19 percent average of six listed Korean nonlife insurers and close to market leader Samsung Fire's 55 percent. To bolster shareholder returns, SGI unveiled a three-year value enhancement plan in January, targeting an annual shareholder payout of 2 trillion won through 2027. This equates to a dividend yield of around 10 percent at the proposed IPO price. The company plans to distribute a 2 trillion won year-end dividend for 2024 in April, ensuring IPO investors who hold shares through early April qualify for the payout. SGI is targeting institutional investors, particularly long-term funds favoring dividend stocks. Industry insiders expect a strong push toward Asian long funds, following the company's overseas roadshows with institutional investors in Singapore and Hong Kong earlier this month. A senior SGI official noted that foreign investors' responses have been significantly more positive this time, particularly after addressing concerns about overpricing and the overhang from KDIC stake. KDIC has extended its lock-up period from six months to one year. 'We have made substantial enhancements to our pricing and shareholder return policies, and KDIC's lock-up extension aims to minimize the impact of its remaining stake sale on the share price,' the official said, adding that both companies are closely coordinating to ensure its exit does not adversly affect the insurer. Starting Thursday, the company will initiate a weeklong bookbuilding process for institutional investors, with public subscription scheduled for March 5-6.
