By Kim Rahn
The prosecution arrested former Korea Communications Commission Chairman Choi See-joong, Monday, for allegedly taking bribes from Picity, a real estate developer, in exchange for peddling influence for its business.
The arrest came amid an escalating bribery scandal involving presidential aides. The 75-year-old former journalist, called the “mentor” of President Lee Myung-bak, admitted to receiving money from Picity, but claimed it was not in return for wielding any influence.
The court issued an arrest warrant for Choi that was requested by prosecutors last week.
The prosecution also plans to question former Knowledge Economy Vice Minister Park Young-june tomorrow, who is suspected of having taken money from the same firm.
Investigators from the Supreme Prosecutors’ Office said they told Park to present himself for questioning Wednesday over alleged bribe-taking in return for exercising his influence. He will be treated as a suspect, they said, indicating that he could also be arrested.
The 52-year-old allegedly received hundreds of millions of won from Picity in return for helping the real estate developer change a cargo terminal development project in southern Seoul into a large-sized logistics complex to include shopping facilities.
Former Picity head Lee Jeong-bae claimed he had given Park some 100 million won between 2005 and 2007. Park worked at Seoul Metropolitan Government under then-Mayor Lee Myung-bak from 2005 to 2006.
As part of the investigation, prosecutors raided the home and office of Pohang-based businessman Lee Dong-jo, chairman of POSCO subcontractor JE&Tech, on Saturday after securing evidence of suspicious financial transactions between him and Park.
While looking into bank accounts of Park and other figures involved, prosecutors said they found Picity gave Park about 20 million won in checks. The money was then transferred to the businessman.
They suspect the businessman may have managed and laundered Park’s kickback.
The 20 million won is separate from some 2 billion won which the former Picity head allegedly spent for lobbying policymakers through a broker.
The prosecution plans to summon the JE&Tech head, who is currently in China, as a witness.
It is said that since 2000, the businessman, an influential in Pohang of North Gyeongsang Province, has been close to Park, a former aide to Rep. Lee Sang-deuk who won a ruling party’s National Assembly seat in the region. Rep. Lee is the elder brother of President Lee Myung-bak.
In the meantime, a local court reviewed whether to issue an arrest warrant for In front of the court in southern Seoul when reporters asked him what he had spent the money on, Choi answered, “I have no excuse.”
Another figure, Seoul City’s former political affairs chief Kang Cheol-won, returned home from China Monday for questioning. He earlier told a local daily that Park called him in 2007 and asked him for an update on the city’s approval process for the development project.
Prosecutors are also examining related documents and records of meetings of Seoul City’s urban development committee between 2005 and 2008, the period during which the broker allegedly lobbied city officials and politicians.
They have also summoned two former city officials in charge of project approval at that time, questioning them over the approval process and Park’s role in it.
In the meantime, a local court reviewed whether to issue an arrest warrant for Choi See-joong, former Korea Communications Commission chairman, for allegedly taking 800 million won from Picity in exchange for peddling influence.
In front of the court in southern Seoul when reporters asked him what he had spent the money on, Choi answered, “I have no excuse.”
He earlier admitted to receiving the money, but claimed it was roughly 200 million won and that it was not in return for influence peddling.
rahnita@koreatimes.co.kr