DA’s Office Questions Bank Officers Concerning Loans to Kim Sang-jin

The Busan DA’s office is considering subpoenaing former presidential aide Jeong Yun-jae this week. The office is investigating various allegations against local developer Kim Sang-jin, who is suspected of waging bribery tactics to take out loans from banks. Jeong is deemed the figure behind all the seemingly illegal loans.

The DA’s office found out that Kim handed a $20,000 political donation to Jeong in March 2003. Right after the donation, the KIBO Technology Fund co-signed a $4.42 million loan application for Kim. The DA investigation now focuses on if the donation has anything to do with the loan approval. The prosecution is questioning senior officers of Kim’s main creditor bank to see who wielded political leverage to give special favors to Kim. The office also questioned senior members of the Korea Veterans Association. The association loaned $94 million to Kim, even though Kim originally applied for a $1 million loan.

The authorities also suspect that Kim bribed some Busan municipal government officials to obtain the approval of his Yeonsan-dong development project. Thus, it plans to subpoena the city officials starting this week.