Grand Korea Leisure is the latest company to be entangled in an ongoing corruption scandal involving South Korean President Park Geun-Hye, local media reports.
On Wednesday, prosecutors raided the homes of two former presidential secretaries of President Park Geun-hye’s confidant Choi Soon-sil.
Prosecutors also raided casino operator Grand Korea Leisure (GKL), securing computers, documents and cellphones of company officials.
GKL has been financially supporting a wheelchair fencing team since May, and had signed a contract with The Blue K, a paper company set up by Choi, for the management of the team.
Investigators reportedly suspect that Choi used her influence with Park in order to push the Ministry Of Culture, Sports And Tourism to order GKL to establish the fencing team and hire a subcontractor to manage its members for the GKL.
According to the Korea Times, suspicions were raised when GKL, which had been deciding whether to establish a disabled swimming or shooting team, suddenly switched its support to fencing.