Value context and insight. lkm@koreatimes.co.kr
'Ex-presidential secretary misappropriated W 10 bil.'
By Lee Kyung-min
Park Bum-hoon
By Lee Kyung-min
Park Bum-hoon, a former presidential secretary for education, is facing fresh allegations that he misappropriated approximately 10 billion won ($9 million) while serving as Chung-Ang University president.
According to the Seoul Central Prosecutors’ Office, Park received the money in donations from Woori Bank in 2009. The money should have been recorded in the university’s accounts book but was entered instead into the university foundation’s accounts book.
Of the money, Park spent some 6 billion won on paying health insurance premiums and pensions for university employees, which were supposed to be covered by the foundation, according to the prosecution.
Park served as university president before being appointed as the education secretary in 2011 under the former President Lee Myung-bak administration.
Prosecutors said that Park violated the Private School Act, under which donations given to a university should be strictly managed by the university alone, and funds for the university and foundation should be managed separately.
The prosecution said Park also faces charges of fraud regarding building a traditional Korean music training center in Yangpyeong, Gyeonggi Province in 2008.
The training center was built after Park donated land worth 700 million won and the provincial government provided some 940 million won in construction cost funds.
The prosecution said Park pocketed some 230 million won in government subsidies during the process.
It added that Park is suspected of obtaining ownership of some of the buildings at the center.
Before the construction began, the center belonged to an art foundation.
In 2009, the center’s two buildings were discovered to have been registered under the names of the Chung-Ang University Foundation and the Mootsori Foundation, of which Park is the chairman.
The prosecution said Park embezzled millions of won in government subsidies after obtaining the building.
It has reportedly secured necessary evidence after raiding the Mootsori Foundation, as well as obtaining testimony from foundation officials.
The prosecution suspects that Park’s wife profited some 63 million won after being given two shops at Doosan Tower in 2011.
His second daughter was also employed as a professor in Yong In University in 2013 with the support of the former president of the university Kim Jung-haeng.
Park helped Kim win the post of Korean Olympic Committee president.
Prosecutors also suspect that Park was appointed as an outside director at Doosan Engine even though he failed to attend any meetings.