CEO, Ex-Parliamentary Speaker Grilled in Bribery Probe

Daejeon prosecutors said yesterday that they are investigating Changshin Textile CEO Kang Keum-won on the charge of embezzling 20 billion won (15.2 million U.S. dollars) and tax evasion of one billion to two billion won (760,000 to 1.5 million dollars).

As soon as the probe is completed in Daejeon, the Supreme Prosecutors’ Office in Seoul will bring Kang to Seoul. They want to know why Taekwang Industrial Chairman Park Yeon-cha delivered five million dollars to Yeon Cheol-ho, the son-in-law of former President Roh Moo-hyun’s brother, at the end of February last year.

Kang met Park and former presidential secretary for general affairs Jung Sang-moon at a Seoul hotel in Aug. 2007 to discuss creating funds for Roh for his life after retirement.

Park allegedly said, “Take five billion won from my Hong Kong account.”

Prosecutors will investigate whether Kang rejected Park’s offer as claimed.

Investigators also seek to know why Kang invested seven billion won (5.3 million dollars) in Bongha Inc. that he set up to develop the village of Bongha in South Gyeongsang Province, where Roh is living.

They are also tracing where the money came from and if any part of the one billion won (760,000 dollars) he delivered to Ahn Hee-jung, Roh’s close confidant and a member of the opposition Democratic Party`s executive committee, was illegal. Ahn will face investigation soon.

Prosecutors also sent home former National Assembly Speaker Park Gwan-yong late last night after grilling him over whether he received 100 million won (76,100 dollars) from the Taekwang chief in April 2006. The former speaker said, “Park (Yeon-cha) made a donation to the National Development Institute I set up in 2006.”

Kim Duk-bae, former Uri Party lawmaker and chief of staff under former Parliamentary Speaker Kim One-ki, is also facing a probe. He is suspected of getting tens of millions of won in illegal political funds from Park from 2004 to 2005.

Kim has also denied receiving money from Park when he visited Taekwang’s factories in Vietnam with other lawmakers in Oct. 2004.

dnsp@donga.com mhjee@donga.com