By Kim Rahn, Jung Sung-ki
Staff Reporters

The prosecution said Monday that Park Yeon-cha, CEO of shoemaker Taekwang, allegedly gave five billion won to the husband of a niece of former President Roh Moo-hyun's elder brother, Roh Geon-pyeong, according to a news report.

Prosecutors are investigating whether the money was handed over to the former head of state or not, it said. Roh's aides have denied the allegation.

Munwha Broadcasting Company said Park sent the money to the niece's husband identified by his surname Yeon through a foreign bank account in February last year when Roh's five-year presidential term was nearing its end.

The money was from the account of APC, a corporation that Park set up in Hong Kong under a false name.

A spokesman for the prosecution said if there was convincing evidence that the former President took the money, he would be investigated, but said whether Roh was aware of the money transfer or not could be more important.

Prosecutors have found that the former President issued an IOU to Park to borrow 1.5 billion won ($1 million) after his retirement.

The prosecution also found that Shinhan Financial Group Chairman Ra Eung-chan wired five billion won in 2006 to Park's account.

Park allegedly told prosecutors that Ra gave him the money and asked him to buy a stake in the Gaya Country Club, a golf course in South Gyeongsang Province, in 2006. But prosecutors confirmed that Shinhan Capital acquired the club in December 2006 and that the money was not spent then.

They said that no evidence has been found to prove the transfer was linked to crimes such as influence peddling. But an investigation is underway to determine why Ra gave him money and whether it was sent to a third party.

The prosecution also summoned Rep. Suh Gap-won of the opposition Democratic Party for the second time on suspicions of taking illegal political funds from Park.

Suh allegedly received tens of millions of won on several occasions, including $10,000 from the owner of a Korean restaurant in Manhattan who offered the money on Park's behalf. The restaurant is the same one where Rep. Lee Kwang-jae, who has already been arrested on similar charges, took Park's money, prosecutors said.

In the previous summons, Suh denied the allegation. The prosecution jointly questioned Suh and Park this time.

rahnita@koreatimes.co.kr