FMR. SEONGNAM COUNCIL CHAIR ARRESTED

[Anchor Lead]

Former Seongnam City Council Chairman Choi Yoon-gil was arrested for allegedly carrying out illegal favors associated with the Daejang-dong development scandal in return for several billion won in bribes. The police investigation appears to have gained momentum as he is the first suspect to be arrested in this case.

[Pkg]

An arrest warrant was issued for former Seongnam City Council Chairman Choi Yoon-gil. He is accused of being promised four billion won from Hwacheondaeyu in return for doing favors for the Daejang-dong development project. The Suwon District Court that issued the warrant said his criminal charges have been fully explained and concerns over destruction of evidence were validated. He is the first suspect to be arrested since the Gyeonggi Nambu Provincial Police Agency started investigating the scandal. Choi once again apologized when he faced reporters before entering the court for an arrest warrant review yesterday.

[Soundbite] Choi Yoon-gil(Ex-Seongnam City Council Chair(Jan. 18)) : "(Did you receive anything for passing the ordinance bill?) I’m sorry."

Choi is said to have played a leading role in passing an ordinance bill for the establishment of the Seongnam Development Corporation at the city council in February of 2013. According to police, the bill allowed both the private and public sectors to jointly steer the Daejang-dong development project. This eventually enabled Hwacheondaeyu and other private companies to make big profits at low risk. In return, Choi was given an executive position at Hwacheondaeyu after he stepped down from the chairmanship and received a portion of the promised four billion won in bonus from Kim Man-bae, Hwacheondaeyu’s major shareholder. Last November, police searched Choi’s home in Gwangju, Gyeonggi-do Province and Hwacheondaeyu's office in Seongnam before questioning Choi as a suspect. He had reportedly denied most of the allegations. When reporters asked him about the bribery allegation at the time, he showed his displeasure by retorting that they were writing a fiction novel. In order to avoid overlapping investigations, police are looking into three charges. They include corruption allegations on Choi and other Seongnam City Council members and privileged sales of apartments. Seoul prosecutors are probing suspected special privileges and lobbying activities of Hwacheondaeyu and other private firms.