Probe into another savings bank scandal widening

Prosecutors in Gwangju have charged a broker with taking bribes from the president of the suspended Bohae Savings Bank, Oh Moon-cheol.

Identified as "Yoon," the broker is known to have accepted tens of thousands of dollars from Oh in return for lobbying high-ranking officials at the National Assembly secretariat.

According to prosecutors, Yoon told Oh last year via another broker Lee Cheol-soo that he would lobby a ranking official at the secretariat to help a figure necessary for the bank (to prevent suspension) take a post at the Financial Supervisory Service.

Oh reportedly gave Yoon 50 million won (46,320 U.S. dollars), prosecutors said.

Yoon is known to have said in questioning that he spent all of the money to repay debt. Prosecutors confirmed that he spent 30 million won (27,800 dollars) to repay his credit card debt but where the remaining 20 million (18,500 dollars) went remains unknown.

Part of the 20 million won was likely transferred to a high-ranking official at the secretariat, prosecutors said.

Prosecutors say Bohae mobilized brokers to prevent its liquidation and extend illegal loans. Of the six brokers confirmed as of Sunday, Lee, who is now wanted by police, is known to have played a key role in the bribery.

By taking out illegal loans worth 200 billion won (185 million dollars) from the bank, Lee became a major shareholder of Samhwa Savings Bank, which was also suspended, and joined the acquisitions of other companies. He later became a loan shark in Seoul and reaped huge profits by taking over companies on the tech-heavy KOSDAQ market.

Yoon is known to be a junior broker under Lee`s control.

Another broker injected 130 billion won (120 million dollars) in private loans into Bohae to enhance liquidity in return for 17 billion won (15.7 million dollars) in loans.

Lee Cheol-woo, head of Hamyang County in South Gyeongsang Province, and his predecessor Cheon Sa-ryeong, were both taken into custody. Lee Cheol-woo reportedly took 20 million won and Cheon 60 million won (55,600 dollars) from Park.

Another broker was indicted for receiving 300 million won (278,000 dollars) from Bohae in return for helping the bank avoid government inspections, and another broker who was the former broker`s partner was put on the wanted list for the same charge.

peneye09@donga.com