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‘Ex-Pres.’s Brother Embezzled $1.1 Mln`

Posted December. 23, 2008 04:57,   


Roh Gun-pyeong, the elder brother of former President Roh Moo-hyun, was indicted yesterday on the charge of embezzling 1.5 billion won (1.1 million U.S. dollars) from his company Jeongwon Construction.

Prosecutors said he invested the money in Real ID Technology stocks and 500 million won (380,000 dollars) in real estate under other people’s names.

They said he is known to have taken bribes worth 2.96 billion won (2.25 million dollars) for lobbying the sale of the now-defunct Sejong Securities, embezzlement and tax evasion amounting to 520 million won (395,000 dollars).

Roh Gun-pyeong, his daughter, son-in-law and his in-law sold Sejong stocks between June 7, 2005, and January 11, 2006, earning about 600 million won (600,000 dollars) in profits.

The period when Roh traded Sejong stocks was the time when the company was on sale. Park Yeon-cha, president of Taekwang Industry, also earned 25.9 billion won (26 million dollars) by selling Sejong stocks in both his and other people’s names.

Prosecutors will soon determine whether Roh and Park violated the Securities and Exchange Act for using undisclosed information.

They are also tracking the flow of tens of millions of won, which an entrepreneur “Kang” gained through buying property in Gimhae and Jinhae, South Gyeongsang Province, from Jeongsan Development, a Taekwang subsidiary, and selling it to subcontractors for the purpose of building an apartment complex.

The money was likely slush funds given that Kang withdrew it in the form of a provisional payment.

Prosecutors announced their mid-investigation results of the lobbying case yesterday, and have had six people arrested: Roh Gun-pyeong, Park and the brothers Jeong Hwa-sam (for alleged illegal involvement in Nonghyup’s takeover of Sejong and the sale of the chemical company Huchems).

Seven others including Jeong Seung-yeong, a Park confidant and the president of Jeongsan Development, were indicted without detention.

verso@donga.com dnsp@donga.com