Outgoing U.N. Secretary-General Ban Ki-moon, a leading presidential hopeful, allegedly received bribes worth $230,000 (280 million won) from Park Yeon-cha, an entrepreneur who was at the center of a bribery scandal involving former President Roh Moo-hyun and his aides, according to media reports.
Citing sources close to the businessman, the weekly magazine Sisa Journal reported Saturday that Park, former CEO of Busan-based shoemaker Taekwang, gave a bag with $200,000 in cash to Ban in 2005 when Ban was serving as South Korea's foreign minister.
The money was handed over to Ban when he hosted a welcoming dinner for visiting Vietnamese foreign minister Nguyen Dy Nien at his residence in Hannam-dong, Seoul, according to the magazine.
The magazine also reported that Park asked a restaurant owner in New York to give $30,000 to Ban in early 2007 after Ban became the U.N. secretary-general. Citing a source close to Park, the report said the money was given to Ban directly.
The report also claimed that prosecutors covered up Park's bribery case involving Ban in 2009 even though they were aware of it through testimony from Park in March 2009 that he gave money to Ban during their investigation into the Park's lobby scandal.
Ban strongly denied the allegations.
In a press statement released by U.N. spokesman Stephane Dujarric, Ban said he will ask the magazine to issue an official apology and withdraw the report.
"The allegations are completely false and groundless," he said. "An official letter will be sent to the editor-in-chief of the Sisa Journal to ask for its apology and cancellation of the report."
Ban's aides said Park, who was an honorary consul to Vietnam back then, was one of the guests at the banquet hosted by Ban in 2005, but the two never met separately during the event or after the event.
"As far as I know, Ban did not receive any money during his term as the foreign minister," an aide said.
Park was arrested last December for evading 29 billion won ($22.8 million) in taxes and giving 2 billion won in bribes to the former head of Nonghyup, Chung Dae-kun, in a bid to acquire one of the company's affiliates at a low price. Other charges saw him indicted for offering more than 5 billion won in kickbacks to dozens of high-ranking figures in politics, government and law enforcement.
The former CEO also allegedly made bribes to Roh Moo-hyun, though the prosecution investigation into case that was closed the month after the former President committed suicide in late May.