A former top financial watchdog official appeared before prosecutors Wednesday to answer questions about his suspected role in a corruption scandal involving one of his former subordinates.
Lee Keun-young, who headed the Financial Supervisory Service (FSS) under the administration of then President Kim Dae-jung, is suspected of playing a role in a bribery case involving Kim Jung-hoe, deputy chief of the watchdog body.
"I have nothing to say now. I'll state it before the prosecutors," Lee told reporters as he arrived at a local prosecution office in western Seoul.
Kim was detained on Monday pending trial on charges of receiving 230 million won (US$245,000) in return for peddling influence for a former Seoul department store owner who unsuccessfully attempted to take over a mutual savings bank in 2001.
Kim denied any wrongdoing, insisting that he only met the department store owner at the suggestion of his boss at the time, Lee, according to the prosecution officials.
The former department store owner, Kim Heung-ju, is already being detained on charges of fraud, embezzling funds from company coffers and issuing bad checks.
Lee has denied involvement in the bribery case, saying he introduced the two Kims because the former department store owner visited him and showed his intent to acquire a mutual savings bank without mentioning a specific name.
Prosecutors said they discovered the mutual savings bank the businessman tried to take over was not in financial trouble at that time, contradicting Lee's claim he wanted to help the bank ease its financial crisis through the deal.
The investigation into the corruption scandal that dealt a blow to the nation's powerful financial regulatory body shows signs of being expanded to politicians.
Prosecutors said Wednesday they were investigating suspected involvement by a former chief presidential secretary to ex-President Kim.
Han Kwang-ok was suspected of taking bribes from Kim Heung-ju when he was in the influential post from 1999 to 2001.
"We have yet to impose an overseas exit ban on Han, but he surely is a suspect in the case," a prosecutor at the Seoul Western District Prosecutors' Office told reporters, requesting anonymity. Prosecutors said they will soon call in the 65-year-old politician for questioning.
The four-term ex-lawmaker Han forced the department store owner to pay hundreds of millions of won in key money and monthly rent for an office used by a key aide to President Kim in 1999, the prosecutors said. The aide, Kwon Roh-kap, returned to political circles that year as an advisor of the Democratic Party.
Shin Sang-shik, a former head of the FSS's Gwangju branch office, was also detained Monday night for inquiry into influence-peddling charges against him in connection with the corruption scandal. The Hyundai Card executive is suspected of peddling influence to help the same department store owner get an illegal loan in 2002, according to prosecution officials.
Seoul, Jan. 10 (Yonhap News)
Ex-top financial watchdog official summoned in corruption case |
