South Korea: Prosecutors charge Park, Lotte group chief with bribery
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South Korea: Prosecutors charge Park, Lotte group chief with bribery

SOUTH KOREAN prosecutors on Monday charged ousted president Park Geun-hye and Lotte Group chairman Shin Dong-bin with bribery in the latest twist to a corruption scandal that rocked the country for months.

Prosecutors charged Shin without detaining him.

Lotte, with interests ranging from hotels and retail to food and chemicals, becomes the second conglomerate mired in the political scandal after Jay Y. Lee, the chief of the biggest, Samsung Group, was arrested on suspicion of bribing Park and her friend, Choi Soon-sil.

Lee, Park and Choi are being held at detention centres.

Lotte, South Korea’s fifth-biggest conglomerate, is grappling with the Chinese shutdown of dozens of its stores in China, after it agreed to provide land for the US Terminal High Altitude Area Defence (THAAD) system outside Seoul.

South Korea, which accuses China of discriminating against some South Korean companies working in China, and the United States say THAAD’s sole purpose is to guard against North Korean missiles. China, which spoke out against it again on Monday, says THAAD’s powerful radar can penetrate its territory and undermine its security.

SEE ALSO: Lessons from Samsung and South Korea in cracking down on corruption

Lotte’s chief Shin is also on a separate graft trial involving family members charged with embezzlement and breach of trust.

Prosecutors accused Park of colluding with Choi to receive KRW7 billion (US$6.16 million) from Lotte for favours, they said in a statement. Park was also charged with abuse of power and coercion by pressuring big businesses to contribute funds to non-profit foundations, the prosecutors said.

Park was also charged with taking bribes worth about KRW29.8 billion (US$26.2 million) from Samsung scion Lee in exchange for supporting his succession, according to the prosecutors’ statement.

Lotte denied allegations it made improper deals with Park, or those linked to her, for favours, but said it would explain itself at court to resolve suspicions.

“We find the decision on the indictment regrettable,” Lotte Group said in a statement.

Park, Lee and Choi as well Samsung Group have denied wrongdoing. – Reuters