Big builder allegedly bribed USFK official

SK Engineering and Construction denies it

By Lee Kyung-min

SK Engineering and Construction (SK E&C) is being investigated for alleged bribing an official of the U.S. Forces Korea (USFK) to win the bid for expanding a military base in Pyeongtaek, Gyeonggi Province, police said Friday.

Channel A, a cable channel, claimed that the firm delivered money to a U.S. Army official via a subcontractor.

When contacted, the firm denied it. The USFK demanded a written inquiry be submitted, neither confirming nor denying the allegation.

In 2008, SK E&C won the bid to expand the military base on 2.3 square kilometers of land in Pyeongtaek in a project worth 460 billion won ($410 million).

Police recently questioned an official from the subcontractor, who claimed that he handed 500 million won to a U.S. Army official at the request of an SK official, according to Channel A

Police may also expand their investigation into other subcontractors suspected of being involved in the alleged bribery.

The government of President Park Geun-hye is engaged in a full-scale crackdown on corruption.

Earlier this week, former and incumbent executives from POSCO E&C were questioned for allegedly creating a 10 billion won slush fund for projects in Southeast Asia by inflating the costs of building expressways in Vietnam between 2009 and 2012 in collusion with local subcontractors.

On Wednesday, the prosecution raided head offices of the Korea National Oil Corp. (KNOC) and Keangnam Enterprises for their alleged corruption in the failed "energy diplomacy" conducted under the former Lee Myung-bak administration.

Keangnam obtained more than 35 billion won in special loans from the government for overseas development projects, and the prosecution found about 10 billion won of the money was instead sent to bank accounts of Keangnam Chairman Sung Woan-jong's family members.

Lotte Shopping is also under investigation for allegedly creating a slush fund using company workers’ bank accounts.