ID :
54096
Mon, 04/06/2009 - 12:52
Auther :

Former Assembly speaker summoned in escalating corruption probe

SEOUL/DAEJEON, April 6 (Yonhap) -- A graft scandal centered on a major financial backer of former President Roh Moo-hyun intensified Monday as prosecutors summoned a former parliament speaker for allegedly receiving illegal funds from the business executive.

Officials at the Supreme Prosecutors' Office said they were questioning Park
Kwan-yong, who served as National Assembly speaker from 2002 and 2004, over
allegations that he took about 100 million won (US$76,000) in illegal political
funds in April 2006 from the Park Yeon-cha, chairman of shoemaker Taekwang
Industry Co. The executive was arrested last December on tax evasion and bribery
charges.
The former National Assembly speaker had also served as chief of staff to former
President Kim Young-sam and is currently a ranking policy advisor to the ruling
Grand National Party.
The Taekwang chairman has been at the center of the unfolding bribery scandal in
which billions of won were reportedly given to political heavyweights, including
Roh's confidants and former government officials, in exchange for various favors.
In late March, Rep. Lee Kwang-jae, a top confidant to the former president, was
placed under arrest on suspicion of pocketing a total of 180 million won from
Park between 2004 and 2008.
Roh's older brother, Roh Gun-pyeong, has also been indicted on charges of
colluding with Park Yeon-cha to broker a buyout of an ailing securities firm from
a state-run company in 2006. A son-in-law of Gun-pyeong was also under suspicion
of taking illegal funds worth US$5 million from the businessman, though
investigators suspect the money was actually destined for the former president.
Aides close to Roh have confirmed the transaction but said it was made as a
legitimate investment.
Meanwhile, prosecutors in Daejeon, 160 kilometers south of Seoul, said they were
interrogating Kang Keum-won, chairman of Changshin Textile Co., over the nature
of his investment into a development project in Bonghwa, the former president's
rural hometown in South Gyeongsang Province. Along with Park Yeon-cha, Kang is
also known as one of Roh's major financial sponsors.

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