Prosecutors to seek arrest warrant for president's friend

SEOUL, May 20 (Yonhap) -- Prosecutors said Wednesday they will seek an arrest warrant for President Lee Myung-bak's close confidant on suspicions that he received bribe money from a corrupt businessman and evaded taxes.

Chun Shin-il, head of Sejoongnamo Tour Co., was summoned on Tuesday and
questioned for allegedly pressing tax authorities to suspend an audit into Park
Yeon-cha, the indicted head of shoemaker Taekwang Industry, in return for
monetary benefits.
Prosecutors said they will summon Chun again Thursday before requesting a warrant.
Park was indicted late last year on separate charges and is at the center of a
tangled bribery scandal involving top politicians. Former President Roh Moo-hyun
and his family are also under investigation on suspicion of having received money
from Park.
Prosecutors suspect Park paid 700 million won (US$560,000) in bribes to Chun in a
complicated equity investment scheme involving one of Chun's business ventures.
Park invested the 700 million won into a game software company founded by Chun in
2003 but has yet to retrieve his investment though all other investors have
already withdrawn from the software company, prosecutors explained, alleging that
Park gave the money to Chun in return for his help in averting a 2008 tax probe.
Chun is also accused of having evaded 10 billion won in taxes in the process of
handing over shares in his company to his three children in April 2006,
prosecutors said.
Chun and the president are known to be close personal friends and graduated from
the same college. Chun is said to have played a key role in Lee's presidential
campaign in 2007.
An unnamed high-ranking official from the ruling party, meanwhile, said that the
presidential office warned Chun last year not to meddle in the tax probe into
Park's company. He added that President Lee may be aware of the relationship
between Chun and Park.
brk@yna.co.kr
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