April 27, 2024

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[THE INVESTOR] Former Korea Development Bank chief Kang Man-soo was arrested Dec. 1 on charges of receiving bribes and abusing his authority.

He has denied all charges saying that he had worked only for the betterment of Korea’s economy. 

Kang is accused of taking about 250 million won (US$214,000) from Hansung Enterprise during and after his term as finance minister -- from February 2008 to February 2009. He headed the KDB from March 2011 to April 2013.

Hansung Enterprise is a seafood manufacturer operated by Kang’s high school alumni Lim Woo-kun. The prosecution believes that Kang was behind KDB’s loan of 24 billion won to Hansung Enterprise 2012.

Kang has also been accused of facilitating a loan of 110 billion won to a faltering company as a favor to a ruling party lawmaker. The prosecution believes that the load was approved after Rep. Won Yoo-chul of the ruling Saenuri Party is said to have requested Kang’s aid to help a company located in his constituency in Pyeongtaek, Gyeonggi Province, in 2012. Following the meeting, the KDB approved loans to the company in question without due processes, and the bank is said to have failed to reclaim 90 billion won of the loans.

No allegations have been brought against Won for his part in the alleged developments.

By Choi He-suk (cheesuk@heraldcorp.com)