Prosecution Raids Home, Office of Key Roh Sponsor

Prosecutors raided the home and the company office of Park Yen-cha, a key sponsor for former President Roh Moo-hyun, Friday, intensifying an investigation into corruption allegations surrounding Roh associates over the 2006 sale of an ailing securities firm, according to Yonhap News.

Park, head of Taekwang Industry, a leading shoemaker and Nike's outsourcing firm, was suspected of tax evasion and insider trading in the process of the takeover of Sejong Securities Co. by the state-run mega firm for farmers, Nonghyup.

Investigators searched Park's residence as well as the headquarters of Taekwang and its golf course affiliate, Jeongsan Country Club, in Gimhae, South Gyeongsang Province, in the morning, said the Supreme Prosecutors' Office.

Park had invested some 10 billion won ($6.9 million) in the shaky securities firm and allegedly earned 17.8 billion won when Sejong share prices jumped at the news of Nonghyup's takeover. He was also suspected of acquiring a Nonghyup affiliate at a bargain.

The probe is part of a broader investigation that also involves Roh's elder brother, Roh Gun-pyeong, who is suspected of having accepted a bribe in return for helping to orchestrate the takeover. Sejong Securities teetered on the brink of collapse before its acquisition by Nonghyup in January 2006.