 Investigators take boxes of seized documents and computer files from Sejoong Namo Tour headquarters in Taepyeong-ro, Seoul, Thursday. The company was raided as part of an investigation into allegations that its Chairman Chun Shin-il took bribes. / Korea Times photo by Kim Joo-yong |
Prosecutors raided the headquarters of Sejoong Namo Tour, Thursday, to investigate allegations that its Chairman Chun Shin-il received bribes for arranging bank loans.
Chun is known to have been one of the close friends of President Lee Myung-bak over the past several decades. The prosecution’s blitzkrieg raid on the heavyweight businessman has sent a chilling message to other tycoons that no one will be exempt from the latest round of investigations into corrupt businessmen and politicians.
Investigators from the Seoul Central Prosecutors’ Office seized accounting books and computer files at the headquarters building in central Seoul in the morning. The search was interpreted as meaning that the prosecution had already secured testimony and information that Chun had received bribes for influence peddling. Prosecutors are going all-out to secure evidence before seeking a warrant to arrest the tycoon.
Chun is suspected of having received 4 billion won in cash and gift vouchers from Lee Su-wu, head of Imcheon Industry, a subcontractor of Daewoo Shipbuilding and Marine Industries. In return, Chun allegedly used his influence for the company to tap 100 billion won in bank loans in 2005 and another 20 billion won in 2008.
Lee is also suspected of having offered construction materials worth 1.2 billion won for a rock museum Chun is building.
It is the latest in a series of raids on companies that are suspected of having raised huge slush funds to bribe politicians and ranking government officials. Taekwang Group, Hanwha Group, and C& Group are being investigated by the prosecution over bribery and slush fund creation.
Chairman Chun has been listed as Imcheon chairman since 2005 and has been paid 500 million won a year. His role is believed to have been limited to that of a lobbyist.
Chun allegedly arranged for his children to buy the company’s stock at lower-than-market prices. Three of his children have bought a total of 140,000 shares for 700 million won, which is around half the market price, investigators said.
It seems inevitable for Chun, who is staying in Japan, to face questioning by the prosecution. Chun flew to Japan in August five days before Imcheon head Lee was questioned by prosecutors and has not returned since, citing business affairs.
Investigators plan to summon him upon his return, and have expressed confidence in obtaining an arrest warrant. Prosecutor-general Kim Joon-gyu told lawmakers at the National Assembly earlier this month that Chun will be treated as a “suspect.”
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