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| Police officers carry the body of former Keangnam Enterprise Chairman Sung Woan-jong down from a mountainside, Thursday. Sung is believed to have committed suicide by hanging himself from a tree on Mount Bukhan in northern Seoul the same day. / Korea Times Photo by Shim Hyun-chul |
Probe into energy projects expected to hit wall
By Lee Kyung-min
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| The late Sung Woan-jong |
He had been at the center of an investigation into the failed "energy diplomacy" of the previous Lee Myung-bak administration.
A police search dog discovered his body at 3:32 p.m. hanging from a tree near Jeongto Temple on the mountain, where his cell-phone signal was last captured, according to police.
Earlier in the day, a massive manhunt began after his son called police when he discovered a suicide note in Sung's home in Gangnam, southern Seoul.
In the note, Sung said that he would end his own life, and this would prove his innocence. "I did not do what I'm accused of," he wrote."Please bury me next to the grave of my mother."
Surveillance camera footage showed Sung leaving his house at 5:10 a.m. He wore a bomber jacket and a baseball cap.
He was scheduled to appear in court where a judge was to decide on whether to approve an arrest warrant the prosecution had sought against him.
Song's death is expected to put a damper on the ongoing probe.
The prosecution earlier said Song, a former lawmaker and close aide to Lee, allegedly peddled influence to receive 80 billion won ($74 million) in loans from the government and financial institutions for overseas resources development projects by fabricating his company's financial status from 2006 to 2013.
He allegedly embezzled 25 billion won of the fund and was engaged in accounting fraud to the tune of 950 billion won.
Sung held a press conference Wednesday and denied all the allegations against him.
"There were 86 companies that participated in the projects at the time. And I don't understand why Keangnam is being singled out," he said.
"Embezzling the money was impossible because we had to use company funds first and receive reimbursement from the government later. The allegations that the money was spent elsewhere before the reimbursement simply do not make sense," he added.
Last month, the prosecution raided his home and offices at Keangnam.
Later, his wife and the company's vice president, surnamed Han, were questioned over their roles in the alleged crimes.
Reportedly, prosecutors have already secured Han's testimony that Sung ordered him to create the slush fund via Keangnam affiliates.
The probe into Keangnam was part of the prosecution's widening investigation into major companies for the failed energy diplomacy.
Steel giant POSCO, Dongkuk Steel and the state-run Korea National Oil Corp. are also under scrutiny.
Meanwhile, Seoul Central District Court approved a rehabilitation plan for Keangnam and its two affiliates including Keangnam Investment, Tuesday, after they were declared insolvent last year.
Due to their insolvency, a total of 400 billion won in financial damages were incurred — 100 billion won for financial institutions and 300 billion won for its contractors.
Former Doosan Engine President Lee Sung-hee was named as the court-appointed arbitrator, the court said. The prosecution said the investigation into overseas energy projects would continue notwithstanding Sung's death.
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