Probe into Busan ex-vice mayor widening to ruling bloc figures

Former Busan Vice Mayor for Economic Affairs Yoo Jae-soo appears at the Seoul Eastern District Court in Songpa-gu, Seoul, Wednesday, to attend the court’s review on whether to issue an arrest warrant over his alleged bribery charges during his term at the Financial Services Commission in 2017. / Korea Times photo by Bae Woo-han

By Kim Jae-heun

The prosecution's investigation into corruption allegations involving former Busan Vice Mayor for Economic Affairs Yoo Jae-soo is expanding to former and incumbent ranking officials at Cheong Wa Dae following the presidential office's suspicious halting of an investigation in 2017.

Former Justice Minister Cho Kuk, who was senior presidential secretary for civic affairs at the time, may be called in soon to undergo prosecutors' questioning over why the inspection was halted abruptly and if he was involved in the process.

Yoo faces arrest over his alleged acceptance of money and valuables from financial company officials while he was a financial policy director at the Financial Services Commission (FSC). It is also alleged he abused his power to help his younger brother get a job at an asset management company that was under the FSC's supervision.

A special investgation team under the civic affairs office had been looking into the bribery allegation against Yoo in 2017. But the probe was halted and, instead of any disciplinary actions, he was moved to a more influential post ― an adviser for the ruling Democratic Party of Korea (DPK), and then to the vice mayorship in July 2018.

The Seoul Eastern District Prosecutor's Office recently summoned Park Hyeong-chul, presidential secretary for anti-corruption, and special investigation team members at Cheong Wa Dae, including Lee In-geol, former head of the team, to question them about why the inspection was stopped.

Cho is said to have initially ordered Park to conduct a thorough inspection of Yoo when the team began investigating him and found relevant evidence in October 2017. But Park said during the prosecutors' inquiry that Cho ordered him to stop the inspection two months later saying he was receiving a lot of calls related to it, according to local media reports.

Yoo, who had taken sick leave from the FSC around the time, resigned from his post the following March, and moved to work at the DPK before taking the vice mayor position in Busan. Prosecutors suspect he continued to receive kickbacks even after his departure from the FSC.

Cho's aide said Cho had decided to halt the inspection during a presidential secretaries' meeting as Yoo had tendered his resignation to the FSC.

Former presidential secretary for civic affairs Baek Won-woo informed the state finance regulator of Yoo's corruption allegations and the inspection into him, but the FSC did not take any disciplinary action against him, merely accepting his resignation offer.

Prosecutors believe Yoo managed to avoid the investigation and disciplinary action, and was able to continue pursuing his career due to “protection” from ruling bloc figures.

Considering the special investigation team was under Cho's supervision, and he was the one who approved the launch of the investigation, it is expected that Cho will face questioning.

Prosecutors may also interrogate former FSC Chairman Choi Jong-ku and former FSC Vice Chairman Kim Yong-beom about whether they helped Yoo avoid punishment when he resigned.