my timesThe Korea Times

Ex-Cheong Wa Dae Official Faces Arrest

Listen

By Kim Rahn

Staff Reporter

An aide to former President Roh Moo-hyun faces arrest for influence-peddling in a state-run highway construction project.

Police have questioned Hong Kyung-tae, 53, since Saturday afternoon when he turned himself in hours after returning home from going to Malaysia last month, apparently to escape the authorities. They sought an arrest warrant for him Sunday.

Hong, who was in charge of state-owned property management, allegedly pressured the state-run Korea Land Corp. to give its highway construction project to Daewoo Engineering and Construction through a broker, Seo, in 2006. Seo was arrested earlier.

Hong is also suspected of having influenced Daewoo to hire a small construction firm as its subcontractor for a Busan port construction in late 2005. In exchange for the influence-peddling, Seo forgave Hong a 500 million-won debt, according to police.

Police have interrogated former Daewoo Engineering and Construction President Park Se-heum and former Korea Land Corp. head Kim Jae-hyun, as well as investigated bank accounts of Hong and his wife.

They also raided his house north of Seoul and his car, but reportedly have not found evidence.

Police imposed an overseas travel ban on Hong on Aug. 25, but he had left the country for Malaysia two days before, a day after Seo had been arrested. Police then asked the immigration office to report his reentry, but the office did not do so immediately when he returned home Saturday morning and police at Incheon International Airport failed to catch him. About six hours later, Hong appeared before police with his lawyer.

Besides Hong, another former presidential secretary is under suspicion. Jeong Sang-moon, together with Hong, is suspected of having peddled influence, so that SK Engineering and Construction could win the Korea Land's road construction project in western coast in 2005.

Police confirmed the three people had a meeting at Cheong Wa Dae.

Seo testified the lobbying and confessed that he took 400 million won from the small construction firm after promising that he would make the firm SK's subcontractor.

Jeong voluntarily presented himself before police on Aug. 28 for questioning, and denied all allegations.

rahnita@koreatimes.co.kr