South Korean authorities have started investigations into a bribery scandal that involving the former South Korean president Lee Myung-bak, Woori Financial Group and Sungdong Shipbuilding.
The prosecution has been questioning Lee Pal-seung, the former chairman of Woori Financial Group, over allegations he offered more than KRW2bn ($1.8m) in bribes to former President Lee Myung-bak in 2008, with it being alleged that KRW800m of the amount was from Sungdong Shipbuilding.
The prosecutors suspect that the money was offered to the ex-president through his son-in-law Lee Sang-joo, a senior executive at Samsung Electronics, before and after Lee Myung-bak was elected president, in exchange for favors.
Sungdong Shipbuilding & Marine Engineering, once a top 10 yard globally, now stands on the brink of liquidation due to a financial crisis.