Authorities Raid Pusan Bank after Jailing Ex-National Tax Service Chief

Former National Tax Service head Jeon Gun-pyo (53) was jailed yesterday for taking 100 million won in kickbacks from his subordinate Jeong Sang-gon (53), who headed the Busan regional tax office.

Now, the DA’s investigation is focusing on the corruption scandals concerning Busan developer Kim Sang-jin, 42.

Bank Raid-

The Busan Public Prosecutors’ Office, which is investigating bribery allegations concerning Kim, searched Pusan Bank headquarters in Busan yesterday. The authorities seized documents and instruments, including loan applications related to Kim’s Minlak-dong condo development project.

The DA’s office also searched Pusan Bank president Lee Jang-ho’s and executives’ offices and houses.

The prosecution will examine the impounded documents and see whether or not Kim pulled strings to get a 68.5 billion won loan from Pusan Bank this past May.

The authorities suspect that Kim bribed bank executives and Busan municipal officials who had the authority to grant the construction permit.

Senior prosecutor Jeong Dong-min in charge of the investigation explained, “We have locked up the head of the tax agency. For now, we have no intent to expand the scope of the malfeasance probe. Instead, we will look into the bribery scandals concerning Minlak-dong and Yeonsan-dong redevelopment projects.”

Former Tax Commissioner Jeon Locked up in Prison Cell Apart from Other Inmates –

After arraignment procedures, the court issued a habeas corpus warrant at 6 p.m. Tuesday, and former national tax commissioner Jeon was locked up shortly afterwards in the Busan Detention Center. He now single-handedly occupies a 1.5 m X 2.5 m cell, where a TV and a shelf are provided.

Like the other inmates, Jeon reportedly woke up at around 6 a.m. yesterday and had his first prison breakfast. The correctional authorities say that Jeon is complying with the prison rules.

A Busan Detention Center official confirmed, “Jeon has eaten his meals with gusto. He’s not making any special demands or complaint. It’s our policy not to offer him special favors or treatment.”

Currently, the Busan Detention Center is home to officials such as Jeon, former Busan regional tax head Jeong, former presidential aide Jeong Yun-jae, and developer Kim. To prevent any contact between them and to prevent any corroboration among them, the prison authorities have assigned each of them to a different building.

Jeong Yun-jae and Kim reportedly spend their time reading books in their cells, while former Busan regional commissioner Jeong, who shares his cell with other inmates, immerses himself in religious books.

In the meanwhile, former national tax commissioner Jeon reportedly discussed a possible plea bargain with the DA’s office when he first reported to the office for questioning on November 1. But Jeon denied the charge the very next day, killing any possibility of a deal. Charged with aggravated bribery, Jeon could be sentenced up to seven years if found guilty. But a successful plea bargain could reduce his prison term by half. Aware of this, the authorities believe he tried to cut a deal.

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