Ruling People Power Party interim chief Rep. Chung Jin-suk speaks during a party meeting at the National Assembly on Yeouido, Seoul, Thursday. Yonhap

By Nam Hyun-woo

Main opposition Democratic Party of Korea Chairman Rep. Lee Jae-myung closes his eyes during a plenary session of the National Assembly on Yeouido, Seoul, Thursday. Yonhap

Ruling People Power Party (PPP) interim chief Rep. Chung Jin-suk has raised an allegation about main opposition Democratic Party of Korea (DPK) Chairman Lee Jae-myung, claiming that Lee is involved in North Korea-bound money transfers through entities under his influence, which would violate United Nations Security Council (UNSC) sanctions.

"We must reveal the full details of how much money has sent to North Korea by Lee Jae-myung's triangular connection between Gyeonggi Province, the Asia-Pacific Peace Interchange Association (APPIA) and Ssangbangwool Group," Chung posted to Facebook on Sunday. "Rep. Lee Jae-myung is now emerging at the core of the money transfer scandal."

Chung was referring to the prosecution's investigation of the relationship between the three entities in regard to suspicions that they colluded to transfer up to $2 million to North Korea.

From 2018 to 2019, when Lee was governor of Gyeonggi Province, the province sent 2 billion won ($1.5 million) to the APPIA to support the association's North Korea-related projects. Before 2018, the APPIA had not been engaged in projects related to North Korea.

The APPIA then issued an ethereum-based crypto token named APP427, the initials of which derive from the combination of the acronym for "Asia Pacific Peace" and the date of the April 27 Inter-Korean summit in 2018. The coin is intended to enable donations to North Korea and to finance projects for introducing North Korean restaurants and beer into South Korea.

"The token is believed to be listed on a cryptocurrency exchange in Thailand, and it is difficult to assume that how much money has been channeled into North Korea through this," Chung said.

Chung also wrote that Ssangbangwool Group, along with the APPIA, directly delivered cash to North Korea to win the rights for inter-Korean businesses.

"The prosecution believes Ssangbangwool and the AAPIA transferred at least $1.5 million and $500,000 respectively to North Korea," Chung wrote. "Sending money secretly to North Korea is a violation of UNSC sanctions, and there were no cases of the government permitting the private sector to send money to the North during the past Moon Jae-in administration."

Ssangbangwool is currently alleged to have paid 2 billion won to cover Lee's legal fees in return for favors. In January 2019 the underwear maker recruited AAPIA Chairman An Boo-soo as a board director for its affiliate Nanos, which has since been renamed SBW Life Sciences.

Ahn was detained on Friday on charges of violating the foreign exchange transactions law and instigating the concealment of evidence.

"With DPK Chairman Lee Jae-myung at the pinnacle of these scandals pretending not to know, his aides and others are being arrested or fleeing overseas," Chung wrote on Facebook.

Above is a screenshot from a white paper about the APP427 cryptocurrency issued by the Asia-Pacific Peace Interchange Association (AAPIA). Screenshot from AAPIA website