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South Korean police have raided the offices of the Korean Esports Association (KeSPA), late on Monday, November 6, following corruption allegations. According to South Korean newspapers “Korea Joongang Daily” and “The Hankyoreh”, prosecutors are investigating funds received by an unnamed former KeSPA president in 2015 from Lotte Homeshopping, a company later involved in two major bribery scandals.

[perfectpullquote align=”right” cite=”” link=”” color=”” class=”” size=””]According to a JTBC News report, three arrests have been made during the investigation.[/perfectpullquote]

The investigation began after prosecutors were presented with clues that a former KeSPA chairman had received several hundred thousands of dollars from Lotte Homeshopping. This was accompanied by claims that the company lobbied in favor of the same chairman to get him elected.

Prosecutors are also investigating a sponsorship deal between the two parties in 2015, when Lotte Homeshopping sponsored the KeSPA Cup. The deal was worth 300 million won (approximately $270,000 USD), but it is not yet clear whether the deal was signed during or after this specific chairman’s time in office. According to another report, from television network JTBC News, three arrests have been made during the investigation.

KeSPA denies having received money illegally from Lotte Homeshopping, claiming via twitter that everything was part of a legitimate sponsorship deal.

It is not the first time the Lotte Group is involved in a corruption scandal. In 2016, two major scandals shook the conglomerate: In June, several companies of the group were raided, as prosecutors investigated a possible slush fund. The investigation forced Hotel Lotte to abandon an initial public offering and Lotte Chemical Corporation to withdraw from bidding for Axiall Corporation. Just two months later, the police questioned the group’s vice president, Lee In-won, following claims for attempted political bribery. He was later found dead in his house, presumably having committed suicide to avoid arrest.

This scandal follows news last month that KeSPA had been downgraded from an “official member” to “reserved member” of the Integrated Korean Olympic Committee. Just days before the police raided KeSPA’s offices, South Korea saw two of the nation’s esports teams compete in the League of Legends World Championship Finals, and its national team win the Overwatch World Cup.