Jailed savings banker additionally indicted for embezzlement

State prosecutors said Tuesday they have brought additional charges against an imprisoned former savings banker over allegations that he embezzled 960 million won ($850,234) disguised as a severance payment.

Lim Suk, the former chief executive of the suspended Solomon Savings Bank, has been at the center of a massive bribery scandal involving numerous high-profile politicians, including former aides and even an elder brother of President Lee Myung-bak.

The 50-year-old Lim has been put under arrest on charges of bribing government officials and politicians to prevent his ailing bank from being shut down, embezzling 17 billion won in company funds and issuing 150 billion won in illegal loans.

Solomon was suspended in May this year due to liquidity shortages.

According to prosecutors, Lim is suspected of embezzling a total of 960 million won in severance pay from company coffers in March after illegally revising the company's regulation on post-retirement welfare, including the payment of severance allowances.

The regulation stipulated that the severance pay can be issued only after the retirement or the death of a chief, and the decision to issue payment should be made during a general meeting of shareholders, prosecutors said. (Yonhap)