Former presidential aide investigated for bribery

A former aide to President Lee Myung-bak is under investigation for allegedly taking illegal political funds from the head of a now-suspended savings bank.

Prosecutors said Wednesday they obtained testimony from Jeil Savings Bank Chairman Yoo Dong-chun that he gave some 20 million won ($17,700) to Grand National Party lawmaker Yoon Jin-sik.

His testimony comes amid a widening investigation into secondary banks’ alleged lobbying of policymakers to prevent their operations from being suspended. Yoon was senior secretary for economic affairs and chief of policy staff at Cheong Wa Dae between 2009 and 2010.

“The chairman said he offered the money when Yoon ran for the July by-election in 2010,” said a prosecutor of the joint team investigating illegalities by the secondary lenders.

Prosecutors plan to question Yoon on whether he took the money and exercised any influence for Yoo in return. “We haven’t confirmed the allegations yet,” the prosecutor said.

Yoon said he has never received any money from the chairman. “I know him as I met him through business dozens of years ago, but I didn’t meet him during the by-election period,” the lawmaker said in a press release.

Yoon, an alumnus of Korea University like Lee, is said to be one of the President’s closest aides. He also held several important posts during the Kim Dae-jung and Roh Moo-hyun administrations, serving as chiefs at the Korea Customs Service and Ministry of Commerce, Industry and Energy.

The chairman was arrested last October on charges of misappropriating 10 billion won of bank funds and lending 100 billion won illegally by using about 10,000 customers’ names.