Ex-president's supporter admits to tax evasion

By Kim Boram
SEOUL, Jan. 5 (Yonhap) -- A key supporter of former President Roh Moo-hyun
admitted Monday in his first court hearing that he evaded 29 billion won (US$22.1
million) in taxes, but denied allegations of bribery.
Park Yeon-cha, chief of shoe manufacturer and Nike outsourcing firm Taekwang
Industry Co., was indicted on charges of evading tax of some 24 billion won on
stock dividend payments by funneling his earnings through his paper company in
Hong Kong.
He was also charged with withholding some 5 billion won in capital gains taxes
from stock purchase in a chemical firm, HU-CHEMS.
In addition, prosecutors also suspect he gave 2 billion won in bribes to Chung
Dae-kun, then head of the state-run National Agricultural Cooperative Federation,
or Nonghyup, in 2006 to seek his influence in taking over Nonghyup's chemical
manufacturing affiliate.
Park is also at the center of the latest scandal involving Roh's elder brother,
Roh Gun-pyeong, who is on trial on graft charges. Investigators suspect that
besides the reported allegations, Park, Chung and the elder Roh were connected in
the orchestrated buyout of a failing securities company in 2006.
"I acknowledge all charges of tax evasion and giving money. I regret what I did
and I am sorry to the Korean people," Park said at the Seoul District Court
hearing. He asked, however, to be released from custody during trial.
Park argued that he established the Hong Kong company to avoid having to share
company profits with foreign contractors, denying he intentionally evaded taxes.
He also said that he gave money to Chung in a goodwill gesture, not to bribe him
for influence in the HU-CHEM acquisition. He added that Chung returned money
after a few months.
brk@yna.co.kr
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