Korean prosecution arrested the former president of Korea Trade Insurance Corporation (K-sure) for allegedly taking money to collude with venture company Moneual in an accounting fraud

http://www.koreatimes.co.kr/www/news/nation/2014/12/116_170832.html

Updated : 2014-12-30 19:04

Former K-sure president arrested

By Kim Se-jeong

The prosecution arrested the former president of Korea Trade Insurance Corporation (K-sure) Cho Kye-ryoong on Tuesday for allegedly taking money to collude with venture company Moneual.

The arrest came amid a widening investigation into a bribery and fraud scandal involving the company.The Supreme Prosecutors’ Office said that Cho, 60, was summoned for questioning on Monday. He is accused of accepting money from Moneual president Park Hong-seok, and in return helping Park increase the company’s credit line.
Park was indicted on charges of mortgage fraud and embezzlement after his company filed for court receivership on Oct. 20, when it was almost 670 million won ($609,000) in debt.
It is unknown how much Cho allegedly received from Park. The prosecution said only that it had evidence that Cho accepted the bribe.
Another K-sure employee was arrested a month ago for allegedly taking 10 million won ($9,000) in exchange for ignoring a fake export performance report.
Cho joined the corporation in June 2011 and resigned abruptly in October last year. The prosecution suspected that he continued to accept bribes after his resignation.
Moneual is a popular home appliance company, regarded as one of the successful venture companies. Its rice cooker is a popular souvenir among Chinese tourists.
The prosecution also arrested a Yeoksam Tax Office employee on Tuesday for allegedly taking 30 million won ($27,292) in exchange for colluding with Moneual.
The prosecution is also trying to locate Cho’s former secretary, surnamed Jeong, who is believed to have been a liaison between Cho and Park. Jeong is believed to be in the United States.
Cho is the second K-sure former head to be investigated over bribe allegations. Yu Chang-moo, 64, was indicted in June on suspicion of taking 100 million won from STX Group. The KTIC offers credit lines to export companies.
Fraudulent sales reports were uncovered in a tax audit conducted in 2012. Following this, Moneual was ordered to pay an additional 15 billion won in taxes.

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