Debt-ridden sex party host is indicted for fraud

Yoon Jung-cheon, the local construction firm head accused of bribing influential figures with lavish sex-fueled parties at his villa in Wonju, Gangwon, has been indicted for multiple charges - but none of them are bribery.

Instead, prosecutors brought him up on charges of fraud, saying he borrowed huge sums of money he had neither the ability nor intention to repay in order to seem like a rich man who hobnobbed with important people such as high-level government officials.

Prosecution sources said they are still looking for more evidence that can prove Yoon, who is currently in jail, provided the parties in return for favors.

“Because Yoon’s period of custody expires on Wednesday [today], we first decided to indict him for personal irregularities,” the prosecution said. “We will continue to investigate the sex-for-influence case surrounding Yoon and other people associated with him. We will summon everyone we need including former vice justice minister Kim, but we haven’t set a specific timetable yet.”

Yoon, 51, stands accused of drugging women at his vacation home and forcing them to provide sexual entertainment for influential figures. Kim Hak-eui, the former vice justice minister, stepped down just six days after being appointed in March due to allegations that he attended them.

The Seoul Central District Prosecutors’ Office said Yoon borrowed a total of 113 million won ($101,474) between January 2010 and October 2011 from three people including a fish wholesaler surnamed Lee. Yoon borrowed about 43 million won from Lee, telling him that he was good for the money but would need time to liquefy his assets, and needed money in a hurry for his businesses.

He also borrowed 40 million won from a man surnamed Kang and about 30 million won from his ex-girlfriend, whose surname is also Lee.

“After 2008, he only planned some businesses, but none of them were realized,” a spokesman of the central district prosecutors’ office said. “He borrowed needed funds from banking institutions likes savings banks, as well as acquaintances, but wasn’t able to repay the money due to his financial difficulties.”

Yoon is also suspected of pushing bidders to back off in an auction to sell off his infamous Wonju villa. He had put it up as collateral for 1.35 billion won that he borrowed between January 2010 and April 2012 from savings banks and failed to pay back.

BY KWON SANG-SOO [sakwon80@joongang.co.kr]