A brother of former President Roh-Moo-hyun appeared before prosecutors Monday for questioning over his suspected role in the 2006 takeover of an ailing securities firm, for which he is alleged to have received bribes, according to Yonhap News.
Roh Gun-pyeong, 66, is suspected of influencing the state-run mega firm Nonghyup, or the National Agricultural Cooperative Federation, to take over Sejong Securities as it teetered on the brink of default while his younger brother was in office.
Roh appeared in the Supreme Prosecutors' Office at 10:40 a.m. after a week-long hiding from public eyes.
Prosecutors are expected to inquire whether he played a role in the takeover and was promised real estate in return. They allege a video game parlor worth 800 million won ($542,373) might have been bought for Roh in return for helping engineer the takeover in January 2006.
The allegations, if proven, can land him in a jail term for up to five years or a 50 million won fine.
Roh, who was formerly convicted of another bribery scandal in 2004, has denies the allegations.
The prosecution spokesman, Choi Jai-kyeong, told reporters Sunday that investigators have obtained Nonghyup's internal documents that report Sejong Securities was selected as the first negotiating partner in early July 2005.
The selection was made shortly after Roh had called the chief of Nonghyup at that time, Chung Dae-kun, to talk about the securities firm, Choi said.
Half a year later, Nonghyup signed a 110 billion won ($75 million) takeover deal with Sejong Securities, which was then renamed NH Investment & Securities. Prosecutors allege Roh's phone call played a decisive role in sealing the deal.
The Nonghyup chief, Chung Dae-kun, was also suspected of pocketing bribes in the takeover. Chung is serving a jail term on another bribery case.