Lobbyist quizzed over bank scandal

By Kim Tae-jong

Park Tae-gyu, a key lobbyist who fled to Canada over his role in a massive influence-peddling scandal involving Busan Mutual Savings Bank, voluntarily returned home Sunday and was questioned by the prosecution.

His abrupt return is expected to provide fresh momentum to the stalled investigation. The 71-year-old allegedly received 1 billion won from the bank in return for illegally lobbying politicians and senior government officials for the lender so that it could avoid a suspension of operations.

Park fled to Canada on March 12, several days before the prosecution began investigating the savings bank, putting the probe in limbo for several months.

According to the prosecution, the high-profile lobbyist has a broad personal network with former and incumbent politicians from ruling and opposition parties, which he also used to help the bank raise 100 billion won in funds from a scholarship foundation and a local college by issuing new shares.

“It seems that Park had no other choice but to decide to voluntarily return home after learning that Canadian immigration was considering deporting him to Seoul,” a prosecutor said.

Upon his arrival at Incheon International Airport, he was whisked away by investigators to the Supreme Prosecutors’ Office in southern Seoul, and the prosecution plans to seek an arrest warrant after they question him about the allegations.

Park, however, denied his involvement in the stock issuance, according to sources from the prosecution.

The investigation into the scandal involving the bank began as it was revealed that the bank’s executives and large shareholders inflicted losses worth 7 trillion won to the bank through financial wrongdoing, including offering illegal loans, accounting fraud and embezzlement.

But nothing much has since come from its investigation, especially regarding the alleged ties between lawmakers and savings banks.

Prosecutors believe that Park’s return will offer momentum to the stalled criminal investigation into the scandal.

Previously, even the parliamentary investigation with the ruling and opposition parties ended fruitlessly.

Many suspected the disappointing outcome is attributed to the fact that lawmakers, especially those elected from provinces, have close ties with the savings banks based in their regions.

The prosecution has indicted about 60 people for their involvement in the scandal. They include Eun Jin-soo, a former commissioner of the Board of Audit and Inspection, Kim Hae-soo, a former aide to President Lee Myung-bak, and Kim Gwang-soo, commissioner of the Korea Financial Intelligence Unit.

But many raised speculation that the prosecution has uncovered only the tip of the iceberg, arguing more key figures have avoided investigation.