President's sister under investigation over fraud
By Lee Kyung-min
Park Geun-ryoung
President Park Geun-hye’s estranged younger sister is under investigation over fraud, prosecutors said Tuesday.
According to the Seoul Central District Prosecutor’s Office, an investigation is ongoing into Park Geun-ryoung, 62, over suspicion that she swindled an investor out of 100 million won ($89,000). After questioning witnesses, prosecutors might summon her for questioning.
The investigation into the president’s sister is the latest development into alleged corruption involving aides to and close family members of the President, along with the ongoing high-profile corruption allegations surrounding senior presidential secretary Woo Byung-woo.
The probe began after Lee Seok-su, the inspector under the presidential office, filed a report on the younger Park with Prosecutor General Kim Soo-nam last month.
According to the prosecution, the victim, whose identity is being withheld, claimed that Park and her two acquaintances failed to return the money after borrowing it by exaggerating her influence.
It is suspected that the former head of the Korean Children’s Center might be involved in land and construction fraud because the investigation team under the prosecution is in charge of this.
The younger Park’s husband claimed that his wife asked the alleged victim to lend her 100 million won, citing accumulated debt and no assets, adding that she returned 60 million won later and paid interest for the unpaid 40 million won. He denied his wife exaggerated her influence.
The younger Park had faced a similar fraud scandal before.
In December, the Seoul Central District Court fined the younger Park and her acquaintance surnamed Choi 5 million won. They received 70 million won from an investor in September 2011, saying they would let the investor operate the parking lot at the Korean Children’s Center in eastern Seoul. They later demanded another 23 million won, citing legal consultation fees, but they did not keep their promise to let the investor operate the parking lot and did not return the money.