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"Tax Commissioner Received KRW60 Million Kickback"

Posted October. 24, 2007 08:12,   

The Busan DA’s office confirmed yesterday that the former head of the Busan Regional Tax Office Jeong Sang-gon cut out a chunk of the bribe he had received from Kim Sang-jin and gave it to National Tax Service Commissioner Jeon Gun-pyo as a kickback. Busan developer Kim Sang-jin reportedly gave former Busan Tax Commissioner Jeong $100,000, and Jeong in turn gave KRW60 million of it to his boss.

The prosecution has been looking into whereabouts of Jeong’s bribe. Now, the DA’s office is pitching in to find evidence attesting to Jeong’s latest disclosure.

A senior prosecutor explained, “We cannot indict someone only based on Jeong’s statement. Actually, he’s not sure about the details. He doesn’t state, in a consistent manner, when and where to have given the kickback to Commissioner Jeon. You know, we really have to thoroughly verify the truthfulness of Jeong’s disclosure.”

Senior prosecutor Jeong Dong-min commented, “We cannot confirm any details about the ‘kickback’ allegation. The investigation is not over yet.” But he did not deny Commissioner Jeon’s wrongdoing.

The DA’s office believes that Commissioner Jeon may have pulled some strings in a tax probe involving developer Kim Sang-jin. Kim also bribed former presidential aide Jeong Yun-jae to evade the probe.

On September 12, the investigating team visited the National Tax Service to receive documents related to former Busan tax Commissioner Jeong. NTS Commissioner Jeon reportedly asked the team not to look further into the whereabouts of the 100 million won bribe, which was later reported to the head of the Busan DA’s office.

Commissioner Jeon responded to the disclosure in a statement, categorically denying his involvement. Jeon argued in the statement, “I didn’t do any favors for Jeong in terms of promotion or job assignment. I have no reason to receive any money from him. I do not know anything about it.”

He added, “I do not know or have not met developer Kim [Sang-jin]. Further, no one reported the tax probe into Kim’s company to me.”