A Seoul court issued an arrest warrant Wednesday for a cousin of President Lee Myung-bak's wife suspected of having received bribes from a troubled savings bank in return for influence peddling.
Prosecutors have been investigating Kim Jae-hong, a cousin of first lady Kim Yoon-ok, on suspicion that he pocketed 400 million won ($348,900) from the chairman of Jeil Savings Bank.
Kim, the head of a welfare foundation under state-run tobacco distributor KT&G Corp., was allegedly asked to lobby for the troubled bank's survival in exchange for the money. He denied the charge.
Despite the alleged lobbying, the bank had its business suspended by the financial regulator in September due to its capital shortage.
In issuing the warrant, Judge Kim Sang-hwan of the Seoul Central District Court cited concerns that Kim could destroy evidence.
This is the second case in which a relative of the president's wife has been arrested on influence peddling charges.
In 2009, a cousin of the first lady was sentenced to three years in jail for taking billions of won in bribes in exchange for election nominations and employment opportunities at state-run businesses.(Yonhap)