By Lee Tae-hoon
Rep. Park Geun-hye, a former leader of the ruling Grand National Party (GNP), flatly denied suspicions Tuesday that her younger brother Park Ji-man illicitly exerted his influence to rescue a debt-ridden local savings bank.
“He has clearly stated his position. Now it’s over,” Park said, referring to her brother’s comments that he did nothing wrong.
Lawmakers of the main opposition Democratic Party (DP) claimed that Ji-man was deeply involved in a failed attempt to rescue the troubled Samhwa Mutual Savings Bank.
Earlier this year, the Seoul-based savings bank was acquired by Woori Financial Group, the nation’s second-biggest banking group, after having its operations suspended due to liquidity problems.
Ji-man is known to be a close friend of Shin Sam-gil, the honorary chairman of Samhwa Mutual, who was indicted in April on charges of extending some 70 billion won in illegal loans.
Park’s brother did not deny his ties to Shin but argued that he was not involved in any of the alleged influence peddling.
Prosecution sources said Park Ji-man is suspected of having introduced politicians, including President Lee Myung-bak’s top aide for political affairs Chung Jin-seok and high-profile businessmen such as Kolon chairman Lee Woong-yeul to Shin.
He is believed to have even visited Shin after he was arrested.
Shin is suspected of seeking illicit favors from dozens of influential figures including some relatives of President Lee, lawmakers close to Park Geun-hye, DP lawmakers, leading businessmen and celebrities with the help of Ji-man.
In 2009, Samhwa Mutual reportedly extended illegal loans to a small fledgling firm called Namu Equity so it could acquire an IT company named C-motech. Namu Equity is headed by President Lee’s nephew-in-law.
Shin is also accused of giving tens of millions of won to Rep. Gong Sung-jin, a pro-Lee GNP lawmaker, through the latter’s younger sister. Gong is currently being investigated by the prosecution.
Rival political parties have been exchanging accusations over the collapse of Samhwa and other savings banks. The GNP blames the DP for the irregularities committed by the banks which it says grew under the previous liberal administration.
The DP, on the hand, is claiming that the escalating banking scandal involves mostly key members of the current administration.