The Anti-Corruption Investigation Division of the Seoul Central District Prosecutors' Office, which has handled the nation's largest special investigations, is accelerating its handling of what are effectively its final major cases, three months before the prosecution service is abolished. The Central District Prosecutors' Office's Anti-Corruption Investigation Divisions 1 through 3, whose personnel have been sharply reduced due to reassignments to special counsel teams, are expected to reach final dispositions on major corporate and power-related corruption cases as early as next month.
According to legal circles Friday, the Seoul Central District Prosecutors' Office's Anti-Corruption Investigation Divisions 1 through 3 are respectively investigating allegations of bribery involving a former People Power Party aide, allegations of improper transactions at Homeplus, and allegations of embezzlement and breach of trust by Cha Jung-hoon, chairman of Korea Land Trust. With the abolition of the prosecution service approaching, these cases must either be decided on for indictment or handed over to other investigative agencies such as the police, making them likely to be the Central District Prosecutors' Office Anti-Corruption Division's last major investigations.
The Anti-Corruption Investigation Division 1 last month searched and seized the premises of a former People Power Party aide, identified as A, and a medical device company. A is suspected of receiving tens of millions of won worth of money and goods from the company over about three years starting in 2021, and of providing favors such as hosting a policy debate organized by a lawmaker's office to help the company's products be included as items eligible for national health insurance coverage. The investigation team plans to summon A and others for questioning as soon as it completes analysis of the seized items.
The Anti-Corruption Investigation Division 2 is devoting all its efforts to allegations surrounding Homeplus's issuance of short-term bonds. Prosecutors suspect that MBK Partners, despite being aware of the possibility of a downgrade in the credit rating of Homeplus's short-term bonds, issued commercial paper and electronic short-term bonds and then filed for corporate rehabilitation, shifting losses onto investors. The investigation team recently summoned a Homeplus finance executive as a suspect for questioning, and is also reportedly considering summoning MBK Partners' management.
The Anti-Corruption Investigation Division 3 has advanced its investigation to the final stages into allegations that Chairman Cha diverted tens of billions of won in affiliate funds for personal use. "Personnel are in severe shortage, but we plan to definitely dispose of important anti-corruption cases before the prosecution service is abolished," a prosecution official said.
