ID :
187093
Wed, 06/08/2011 - 05:25
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http://m.oananews.org//node/187093
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Top FSC official arrested on bribery charges
SEOUL (Yonhap) - A high-ranking financial regulator has been arrested for allegedly receiving bribes from a scandal-ridden bank in return for helping thwart audits into the bank's illegalities, prosecutors said Wednesday.
Kim Gwang-soo, commissioner of the Korea Financial Intelligence Unit under the control of the Financial Services Commission (FSC), is accused of receiving a total of 40 million won (US$37,088) from Busan Savings Bank over the past five years, they said.
Prosecutors suspect Kim, in return, helped the bank take over two smaller savings banks and open an office in the capital area when he was the chief of the financial service bureau of the FSC between 2008 and 2009.
The 54-year-old official is also alleged to have used his influence last year to prevent Busan Savings Bank from being forced to shut down over illegal loans and other financial wrongdoings. He was working for the ruling Grand National Party (GNP) at that time.
The Seoul Central District Court on Tuesday issued an arrest warrant for Kim, saying his crime has been ascertained and he might attempt to destroy evidence, court officials said. The prosecution had sought a warrant for Kim on Friday after 12 hours of intensive questioning at the Supreme Prosecutors' Office in southern Seoul.
Prosecutors have already found that the Busan-based bank bribed officials of the Financial Supervisory Service (FSS), another financial regulator, which is involved in inspecting savings banks. But it is the first time that they have confirmed that the bank bribed an FSC official.
Prosecutors are now expected to expand the probe to include ranking government officials and politicians.
Prosecutors have been investigating the bank since it was suspended for capital shortages along with several other savings banks in February. Last month, the prosecution indicted executives and large shareholders of Busan Savings Bank for allegedly causing about 7 trillion won in losses to the company through illegal loans, accounting fraud, embezzlement and other wrongdoings.
Kim Gwang-soo, commissioner of the Korea Financial Intelligence Unit under the control of the Financial Services Commission (FSC), is accused of receiving a total of 40 million won (US$37,088) from Busan Savings Bank over the past five years, they said.
Prosecutors suspect Kim, in return, helped the bank take over two smaller savings banks and open an office in the capital area when he was the chief of the financial service bureau of the FSC between 2008 and 2009.
The 54-year-old official is also alleged to have used his influence last year to prevent Busan Savings Bank from being forced to shut down over illegal loans and other financial wrongdoings. He was working for the ruling Grand National Party (GNP) at that time.
The Seoul Central District Court on Tuesday issued an arrest warrant for Kim, saying his crime has been ascertained and he might attempt to destroy evidence, court officials said. The prosecution had sought a warrant for Kim on Friday after 12 hours of intensive questioning at the Supreme Prosecutors' Office in southern Seoul.
Prosecutors have already found that the Busan-based bank bribed officials of the Financial Supervisory Service (FSS), another financial regulator, which is involved in inspecting savings banks. But it is the first time that they have confirmed that the bank bribed an FSC official.
Prosecutors are now expected to expand the probe to include ranking government officials and politicians.
Prosecutors have been investigating the bank since it was suspended for capital shortages along with several other savings banks in February. Last month, the prosecution indicted executives and large shareholders of Busan Savings Bank for allegedly causing about 7 trillion won in losses to the company through illegal loans, accounting fraud, embezzlement and other wrongdoings.
