Taekwang Industry chief's home, office raided in corruption probe over Roh associates

SEOUL, Nov. 28 (Yonhap) -- Prosecutors raided the home and the company office of
Park Yen-cha, a key sponsor for former President Roh Moo-hyun, on Friday,
intensifying an investigation into corruption allegations surrounding Roh
associates over the 2006 sale of an ailing securities firm.

Park, head of Taekwang Industry Co., a leading shoemaker and Nike's outsourcing
firm, was suspected of tax evasion and insider trading in the process of the
takeover of Sejong Securities Co. by the state-run mega firm for farmers,
Nonghyup.
Investigators searched Park's residence as well as the headquarters of Taekwang
and its golf course affiliate, Jeongsan Country Club, in Gimhae, South Gyeongsang
Province, in the morning, said the Supreme Prosecutors' Office.
Park had invested some 10 billion won (US$6.9 million) in the shaky securities
firm and allegedly earned 17.8 billion won when Sejong share prices jumped at the
news of Nonghyup's takeover. He was also suspected of acquiring a Nonghyup
affiliate at a bargain.
The probe was part of a broader investigation that also involves Roh's elder
brother, Roh Gun-pyeong, who is suspected of having accepted a bribe in return
for helping to orchestrate the takeover. Sejong Securities teetered on the brink
of collapse before its acquisition by Nonghyup in January 2006.
hkim@yna.co.kr
(END)