Ex-tax official indicted for bribery

By Kim Tae-jong

The prosecution has indicted a former ranking tax official on charges of bribery.

Lee Hee-wan, former head of the investigative unit at the National Tax Service, allegedly received 300 million won ($281,100) from KimYoung Co., an academy specializing in college transfers, for tax favors in 2006, according to the prosecution.

“He retired from the tax agency in June, 2006. But even after that, he used his power to peddle influence in the tax agency’s probe into the allegedly corrupt company after receiving the bribe,” a prosecutor said.

The tax agency launched a special investigation into KimYoung Institute in 2006 after various allegations including tax evasion, embezzlement and ill-kept accounting records.

Kim Young-taek, chairman of the company, allegedly gave Lee 300 million, asking him to push his former colleagues to complete the investigation with results favorable to the company and remove its name from the press release, the prosecutor said, citing the investigation’s conclusions.

Lee is also suspected of receiving 3 billion won from SK Group’s affiliates between 2006 and 2010 in kickbacks, the prosecutor said.

The prosecution believes that the money was a post-retirement payoff from the company to thank Lee “for watching its back” while he was heading tax probes into SK Group at the tax agency.

SK Group denies the allegation, arguing it was a legal consultation fee for tax accounting services.

The prosecution remains skeptical, citing the amount as exorbitant consultation fees.

“Lee has received 50 million won every month as a consultation fee for the past five years, which is almost 10 times higher than the average consultation fee retired officials receive.”