Corruption probes target Roh allies
State prosecutors are zeroing in on
former President Roh Moo-hyun's political allies suspected of
involvement in corruption, tax evasion and illegal political funding.
His elder brother Roh Gun-pyeong was arrested
Thursday on charges of taking bribes to influence a high-profile corporate
takeover in 2006.
Prosecutors probing Roh's case are shifting their focus to the former
president's confidant and sponsor, Park Yeon-cha, and
his political connections.
The businessman is suspected of
engaging in an insider trading, tax evasion and illegal lobbying, all related
to the elder Roh.
Park runs a fast growing business
empire involved in shoemaking, construction, electricity, golf, and finance.
His company, Taekwang Industry, is a local production
partner of Nike, a global shoe, clothing and sports equipment brand.
A number of politicians and former
officials are believed to have collaborated with him in illegal stock trading
or received donations from him, some of which may be illegal, prosecution
officials said.
Park was fined five years ago for
illegal political donations to the former president's key aide Ahn Hee-jeong.
Prosecutors are planning to summon
him next week.
Prosecutors are looking into
allegations that Lee Kang-cheol, who served as a
political aide to Roh, received 200 million won
($135,000) in illegal political contributions from a businessman.
Lee has banned from leaving the
country pending the inquiry.
Separately, a secretary of Lee was
arrested last month for taking 50 million from a former chief executive of
mobile phone company KTF.
Prosecutors have yet to confirm the
money was delivered to Lee.
Another Roh
ally, Lee Sang-ho, is also undergoing an inquiry for tax evasion and slush fund
creation.
The National Tax Service has asked
the prosecution to investigate his medical foundation, called Wooridl, on charges of dodging taxes worth about 1 billion
won.
His wife's pharmaceutical company
is also under a tax evasion probe.
The former president remained
tightlipped over the scandals involving his brother and associates. The
incidents were a setback to Roh, who trumpeted
anticorruption one of his primary achievements.
The ruling Grand National Party
condemned what it called "the hotbed of corruption," as Roh's brother was detained late Thursday. The opposition
Democratic Party expressed regret.
Roh Gun-pyeong
and two collaborators were accused of receiving 3 billion won from the former
largest shareholder of now-defunct Sejong Securities
Co. in exchange for lobbying the National Agricultural Cooperative Federation
to take over the distressed brokerage house in 2006. Sejong
was renamed NH Investment & Securities.
Park is suspected of having used
insider information to trade Sejong stocks.
Prosecutors said yesterday they
suspect he may have reaped capital gains worth more than 20 billion won before Sejong was sold to the NACF.
Prosecutors found more than 10
stock trading accounts that Park may have established under borrowed names to
deal in Sejong shares and evade taxes.
Prosecutors are also investigating
allegations that the elder Roh may have played a role
in helping Park take over HUCHEMS, a chemical product maker, from the NACF at a
below-market price.
Source: Korea Herald