Prosecutors raid tax office in ongoing bribery scandal

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Prosecutors raid tax office in ongoing bribery scandal

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Investigators from the Supreme Public Prosecutors’ Office confiscate boxes of evidence from the Seoul Regional Tax Office yesterday after a raid connected to the ongoing investigation into Park Yeon-cha’s alleged attempt to ease a tax probe on his businesses. [YONHAP]

Prosecutors raided the Seoul Regional Tax Office yesterday morning to investigate an allegation that Taekwang Industrial Chairman Park Yeon-cha had lobbied the taxmen to ease a probe into his businesses.

Some 20 prosecutors and investigators entered the tax office in downtown Seoul at 11 a.m., targeting the workplace of the officer in charge of tax probes on Park’s companies last year.

“The purpose of the raid is to look into data not included in the tax office’s report to the prosecution at the time,” said Hong Man-pyo, a senior prosecutor at the Supreme Public Prosecutors’ Office’s central investigation unit.

The tax office handed over the outcome of the investigation, which took place from July to November last year, to the prosecution.

Park, head of Busan-based Taekwang Industrial, was indicted last December on charges of tax evasion, embezzlement and bribery.

According to the prosecution, the office of Cho Hong-hee, the chief of the corporate tax bureau, was searched, and prosecutors confiscated documents related to tax probes on Park’s companies as well as financial data.

The raid also examined the contents of an office that Cho used at the time of the tax probe last year as well as other related offices.

Cho is thought to have informed Han Sang-yool, the head of the National Tax Service, about the tax probe’s progress.

“Cho is not a suspect right now,” said Hong. “We will review the evidence first and then decide whether we want to question him or not.”

This is not the first time prosecutors have looked into Park’s attempt to influence the tax probe.

A former presidential aide to President Lee Myung-bak was indicted last month on charges of receiving bribes from Park for a failed attempt to ease the probe.

Choo Boo-kil, President Lee’s former public affairs secretary, attempted to halt the tax probe by calling senior GNP lawmakers, including President Lee’s elder brother, Representative Lee Sang-deuk. Choo’s requests, however, were turned down, the prosecution said.

Prosecutors suspect Park has bribed more people to save his company.

The prosecution is also paying attention to an allegation that high-profile business executives and politicians met in July last year to come up with a strategy to protect Park.

Others thought to have attended the meeting are Kim Jung-bok, an in-law of Park who is the former head of the Jungbu Regional Tax Office; Chun Shin-il, chairman of Sejoong Namo Tour; and Lee Jong-chan, former Blue House civil affairs secretary.

Chun, a close friend of President Lee, has been barred from leaving the country since March because of the Park investigation.

Prosecutors said they began tracking Kim’s bank transactions earlier this week.

Meanwhile, prosecutors are coordinating summons schedules with lawmakers and local government officials suspected of receiving bribes from Park.

The prosecution will also investigate incumbent prosecutors accused of receiving money from Park following the JoongAng Ilbo’s report yesterday that Park had testified that he gave money to prosecutors.

“I cannot confirm the report,” Hong said. “It raised suspicions about the prosecution, so we will thoroughly investigate the allegations.”

A source at the Supreme Public Prosecutors’ Office said Park’s testimony was made in early March.



By Ser Myo-ja, Lee Chul-jae [myoja@joongang.co.kr]
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