FSS deputy chief entangled in savings bank graft case

An indicted lobbyist has told prosecutors investigating the illegal lobbying scandal of Busan Mutual Savings Bank that he delivered gift certificates worth tens of millions of won to a deputy chief of the nation’s top financial regulator.

Park Won-ho, one of the three senior deputy governors of the Financial Supervisory Service, is suspected of accepting kickbacks from Park Tae-gyu who asked him to ease the FSS inspection on the troubled savings bank, according to the Central Investigation Unit of the Supreme Prosecutors’ Office.

The FSS official in charge of capital markets said he met Park and had telephone conversations about the education of his children, but was never asked to peddle influence regarding savings banks. The two Parks exchanged frequent phone calls between February and June last year when the FSS and the Korea Deposit Insurance Corporation were undergoing a joint probe into financial institutions affiliated with the Busan savings bank.

The lobbyist’s naming of Park came shortly after he blew the whistle on ex-senior presidential secretary for public relations Kim Du-woo, prompting the prosecution to consider requesting an arrest warrant for Kim.

Kim, who was confirmed to have spoken to Park over 90 times since April last year until the day the lobbyist fled to Canada in April, is suspected of receiving cash, gift certificates and golf clubs worth about 100 million won from Park.

The prosecution will summon Kim for questioning Wednesday morning on whether he took bribes and pulled strings to save the Busan savings bank.

Prosecutors are also looking into the possible involvement of other high-ranking officials based on Kim’s bank account and telephone records.

Also under investigation are Park Hyung-sun, chairman of Haedong Construction Co., who allegedly lobbied politicians to save the Busan savings bank, and KTB Asset Management President Chang In-hwan who arranged the bank’s issuance of new shares worth 100 billion won in June last year.

Park Tae-gyu said he received from Kim Yang, indicted vice chairman of Busan Mutual Savings Bank, a total of 1.7 billion won as lobbying funds, about 1 billion won of which he spent to pay for his car and to entertain acquaintances “who are unrelated to the savings bank.”

But since the money was delivered to Park over a period of seven months, prosecutors suspect that Kim Du-woo may have helped arrange the lobbyist’s contact with other high-profile figures.

By Kim So-hyun (sophie@heraldcorp.com)