South Korea pension fund head detained in Park probe

2-MIN READ2-MIN

Former South Korean health minister Moon Hyung-pyo, centre, arrives at the office of the independent counsel in Seoul, South Korea. Photo: AP

Published: 2:10pm, 28 Dec 2016Updated: 10:19pm, 28 Dec 2016

South Korea’s state-run pension fund chief was detained Wednesday in a widening probe to determine whether President Park Geun-hye forced companies including Samsung to offer bribes, a spokesman said.

As part of an ongoing corruption scandal, Park is accused of colluding with long-time confidant Choi Soon-sil to strong-arm companies like Samsung into handing over tens of millions of dollars to dubious foundations which Choi controlled.

During investigations, former health minister Moon Hyung-pyo - now National Pension Service (NPS) chief - has been accused of pressuring the state pension fund to back a controversial merger of two Samsung units when he served in the health ministry.

He has denied all allegations but was detained after a key NPS official told investigators he was pressured by the health ministry to vote for the merger, Yonhap news agency said.

“Moon was taken into emergency detention early this morning”, the spokesman of the Special Prosecutor’s Office said.

South Korea's parliament voted to impeach Park Geun-hye on December 9, accusing her of constitutional and criminal violations ranging from a failure to protect people’s lives to bribery and abuse of power. Photo: AFP

Investigators now have to decide whether to formally arrest Moon before the emergency detention period expires in 48 hours.