Man Accused of Pressuring National Pension Service for Samsung Now Runs It... BUSTED!

Man Accused of Pressuring National Pension Service for Samsung Now Runs It... BUSTED!

SEOUL, Dec. 31 (Yonhap) -- South Korea's special prosecutors on Saturday grilled a former health minister as part of their probe into an influence-peddling scandal involving President Park Geun-hye and her friend.

   The team of special prosecutors questioned Moon Hyung-pyo, now chief of the National Pension Service (NPS), over suspicion that he exerted pressure on the state fund to back a mega merger deal between top conglomerate Samsung Group's key two units when he was the minister last year. Moon was formally arrested earlier in the day.

   He is accused of having pressured the NPS, the biggest shareholder of builder Samsung C&T Corp. to support a controversial merger between it and Cheil Industries Inc. on behalf of the presidential office Cheong Wa Dae.'

President Park was impeached on Dec. 9 over a corruption scandal involving her long-time confidante Choi Soon-sil which has rocked the country's politics for months.

   State prosecutors earlier said that Park allegedly colluded with Choi to strong-arm Samsung and other local conglomerates into donating money into two non-profit foundations controlled by Choi.

   Samsung is suspected of receiving backup from the NPS for the merger deal in 2015 in exchange for donations and favors to Choi and her daughter.

   Moon, who had denied of having exerted influence in the pension fund's decision at a recent parliamentary hearing, reversed his statement during an interrogation by special prosecutors, according to the independent counsel team's spokesman Lee Kyu-chul.

   Investors are now looking into whether President Park was directly involved in the process, which they believe could constitute bribery.

   The team led by independent counsel Park Young-soo arrested without warrant Yi Il-hwa, a professor at Ewha Womans University, on Saturday on suspicion that he gave unjust favors to Choi's only daughter to help her earn credits.

   Chung Yoo-ra, Choi's 20-year-old daughter, allegedly gained illicit admission to the university and favors from professors.

   Last week, investigators secured a court warrant to arrest Chung, who is believed to be hiding out in Germany.

   The special prosecutors also said Saturday they have asked a special parliamentary committee to look into possible perjury committed by Culture Minister Cho Yoon-sun.

   According to the team and the National Assembly, Park Young-soo told the committee that Cho appears to have given false testimony on her connection with the controversial blacklist of cultural figures during a parliamentary hearing.

   The list includes writers and film stars, among others, who were viewed as being critical of the Park administration. Cho, a close confidante of Park who previously served as presidential secretary for political affairs, has maintained she has never seen the list.

   However, the special prosecutors have obtained evidence that Cho had been involved in compiling the list, according to sources privy to the matter. These prosecutors have grilled other figures thought to be closely connected to the list, including Kim Jong-deok, former culture minister, and Mo Chul-min, South Korea's Ambassador to France who was once the senior presidential secretary for culture.

   The special prosecutors raided Cho's home on Monday, and they plan to summon her for questioning in the near future.

   Choi Soon-sil, currently in custody, is under trial over a set of corruption charges where President Park was named accomplice by state prosecutors.

   Park, who denies all charges against her, is waiting for the Constitutional Court's decision over whether to unseat or reinstate her after lawmakers voted to impeach her early this month.

Leading Presidential Candidate Supports Cutting Back Power of Presidency

Leading Presidential Candidate Supports Cutting Back Power of Presidency

Did Chung Yoo-ra's College Professor Cheat for Her?

Did Chung Yoo-ra's College Professor Cheat for Her?