‘War on Public Corruption’ Nets 1st Casualties

Police arrested yesterday Korea Asset Management Corp. official Kim Jin-tae and Ido Land CEO Do Gyu-yeong on charges of breach of trust and bribery.

The arrests are the first since prosecutors declared war against corruption in public corporations.

Kim, who is in charge of credit assistance at the state-run company, is alleged to have accepted 40 million won from Do, who heads a leisure facility firm. In return, Kim in 2005 sold shares of his company that were appraised at six billion won at the time for 2.7 billion won to Do.

Prosecutors said Do sold the shares 18 months later for 27 billion.

Obtaining information that Do gave more than 100 million won to officials of the asset company, prosecutors are investigating if the money also went to senior officials as well.

Another official of the state-run firm was arrested on the charge of taking tens of millions of won from a company in return for securing billions of won in loans from Korea Credit Guarantee Fund.

Prosecutors said they have reliable information that the company gave hundreds of millions of won in bribes to another official of the asset company in return for loan assistance. The official is in hiding and an investigation will seek to confirm if he also sent money to the fund‘s officials as well.

A manager at Korea Express Corporation was also arrested for allegedly taking 35 million won from a company that asked for his help in buying state-owned land.

needjung@donga.com