Prosecutors raid DAS over MB

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Prosecutors raid DAS over MB

Published: 25 Jan. 2018, 20:04

Prosecutors on Thursday conducted another raid on a local auto parts maker linked to former President Lee Myung-bak over suspicions that government officials may have exerted influence to help the company recoup its investment in a troubled financial firm run by Lee’s former business partner.

The Seoul Central District Prosecutors’ Office sent investigators to search the premises of DAS in Gyeongju, some 370 kilometers (229 miles) southeast of Seoul, and the residence of its president, surnamed Kang, and confiscated documents, mobile phones and computer files.

The latest search comes as part of a widening prosecutors’ investigation into allegations that the ex-president helped the company, run by Lee’s eldest brother, recover the 14 billion won ($13.2 million) investment from an investment advisory firm set up by Lee’s former business partner Kim Kyung-joon.

The allegations came to light as a group of investors who never recouped their losses filed a complaint accusing the former president of pulling strings for DAS to take back the investment ahead of them. They alleged that the former president is the real owner of the company.

They claimed that the Blue House and the Foreign Ministry were involved in securing the investment, since the firm was based in the United States. Lee served as president from 2008-2013.

Yonhap