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Heads of State-run Firms Face Arrest

Posted May. 17, 2008 05:04,   


The Seoul Central District Prosecutors’ Office requested arrest warrants yesterday for Korea Asset Management Corporation manager Kim Jin-tae and Do Kyu-young, chairman of Idoland that operates Tigerworld, an indoor sports complex located in Bucheon, Gyeonggi Province, on charges of bribe-taking and bribe-giving, respectively, yesterday.

It is the first time that prosecutors requested arrest warrants since they declared the war against corruption at state-run corporations. The Seoul Central District Court will decide whether to allow the arrest after court hearings today.

Do is suspected of giving 40 million won to KAMCO manager Kim, who helped Do to buy shares of a company at 2-3 billion won in 2005. The shares were owned by KAMCO as a means to secure bonds.

According to prosecutors, Do earned an eye-popping profit by selling the shares to another person for 27 billion won 18 months after his initial purchase.

Prosecutors have found evidence that Do has given more than 100 million won not only to Kim but also to other KAMCO employees and are currently tracking down the source of money.

Prosecutors are also trying to find whether there was a practice in KAMCO in which firms are forced to give bribe to the asset management firm.

Another prosecutorial team investigating suspicions regarding the Korea Exchange’s reckless management has reportedly found evidence that the KRX has recently used a specific travel agency when its employees go overseas business trips and searched the travel agency.

The probe team plans to investigate whether the KRX has diverted the company money by pumping up traveling expenses, since the travel agency is owned by a relative of a high ranking official of the KRX.

Prosecutor Choi Jae-kyung at the Supreme Prosecutors’ Office said, “We ordered prosecutors to finish their investigation over corruption cases at state-run corporations by late June, instead of late August.”

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