Connected families of Korean cosmetics giant AmorePacific Group chairman Suh Kyung-bae have come under suspicion of benefiting from favoritism by monopolizing procurements from state-owned casino operator Kangwon Land.

According to Rep. Ku Ja-keun of main opposition People Power Party, companies run by families and relatives of Suh Kyung-bae, chairman of AmorePacific Group, dominated more than half of procurement placements from Kangwon Land in Gangwon Province since 2013.

Three corporate names Taeshin Inpack Co., Nongshim Data System Corp. (NDS), and KGS monopolized tenders from the casino operator. Taeshin is run by Suh Myoung-hyun, a cousin of AmorePacific chair and KGS is also related. The Nongshim unit is under food giant Nongshim Group owned by Shin Chun-ho, Suh’s father in law.

According to the documents, Kangwon Land violated the electronic bid rule when placing a tender for 2.95 billion won worth electronic table orders at the casino in July this year. NDS was selected as the bidder even though it submitted a bidding proposal later than the deadline.

Kangwon Land is suspected of providing a unfair rebidding opportunity to NDS after reviewing the proposal in advance and requesting supplementary documents, violating a clause under the special note on electronic bidding that bans making any changes or cancelling electronic bidding proposals and another clause that states opening of the bids should be carried out at a designated date and time.

The casino operator acknowledged regulation violation, but insisted that it “did not aim to provide convenience to a particular bidder” and that there were no “superior instructions or pressure.”

NDS is also alleged to win an order even with a false bidding proposal, according to the lawmaker.

According to the bidding document, Kangwon Land presented a condition that the device under tender should include a roll-back feature, which retrieves or recalculates game money to correct any errors identified after the game. NDS in its product specification for the electronic table suggested its devices are fitted with such features, but in fact its machines do not have such functions, according to lawmaker Ku.

According to Ku, NDS is a late comer in the casino industry but it formed a consortium with Taeshin Inpack and KGS and won three of four Kangwon Land bids in 2019 and 2020.

Ku called for the Board of Audit and Inspection to look into the suspicions for more transparency in the operations of state-run casino company.

Kangwon Land selects supplier of casino machines, electronic tables, and other items through public tender. Ku said that “suspicions are constantly being raised that the bidding team at Kangwon Land is providing favor to a particular bidder.”

By Baek Sang-kyung and Lee Eun-joo

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]