By Kim Rahn
Staff Reporter
The prosecution raided the National Tax Service (NTS) and the Seoul Regional Tax Office in central Seoul, Wednesday, as part of its investigation into allegation that Park Yeon-cha, the scandal-ridden CEO of shoemaker Taekwang, lobbied tax officials to evade an audit of his business.
The raid is seemingly the third round of probes involving Park, following his alleged illegal provision of money to former and incumbent political and administrative heavyweights, and bribes to former President Roh Moo-hyun.
Some 20 investigators seized computers and financial documents from the regional office department in charge of auditing Park's companies ― Taekwang and golf course management firm Jeongsan Development ― between last July and October. The NTS office of an official who was leading the audit at that time was also searched.
It has been alleged that Park lobbied taxmen to stop the audit through his in-law Kim Jung-bok, former chief of the Jungbu Regional Tax Office, and Sejoong Namo Tour Chairman Chun Shin-il, a long-time friend of President Lee Myung-bak.
The prosecution will summon Kim, Chun and several tax officers soon for questioning. Prosecutors imposed an overseas travel ban on Chun in March for allegedly accepting money from Park in return for wielding his influence, and started combing through Kim's bank accounts this week.
The two people are suspected of having discussed the issue occasionally together with Lee Jong-chan, former secretary to President Lee.
Kim denied the three-party meetings but said that he gave Park advice about tax audits as a relative.
Chun, the second aide of President Lee to be allegedly involved in the scandal following former presidential secretary Choo Bu-ghil, said earlier that he had not received a single penny from Park regarding the tax audit. But he admitted that as head of the Korea Wrestling Federation, he took 20 million won from Park, who was his deputy, during the Beijing Olympics last August and gave it to wrestlers as gifts.
Chun is also suspected of having liquidated huge stock ahead of the presidential election to finance President Lee's campaign and having given three billion won in a special donation to the Grand National Party as a proxy for Lee.
In a related investigation into former President Roh, prosecutors will re-question his wife, Kwon Yang-sook, this week over the $1 million she claimed to have borrowed from Park to repay a debt. Roh and Kwon did not disclose what she used the money for during their earlier summons, but said they would give the details to the prosecution soon.
Prosecutors suspect Kwon gave part of the money to her children to pay for their stays overseas. They are trying to find out whether Roh was aware of the money transaction during his presidency ― an allegation he denies.
After Roh's lawyer submits the details, Kwon will be questioned either through a summons or by letter. The prosecution will then decide whether to seek an arrest warrant for the ex-head of state.