Scandal scrutiny snares former aide
Prosecutors say accused has been indicted on collusion charge as finance minister vows to keep economy ‘strong and stable’
South Korean prosecutors said on Sunday that they have indicted a former senior aide to impeached President Park Geun-hye in their investigation into the massive political scandal that led to Park’s downfall, local media reported.
Prosecutors in Seoul indicted Cho Wondong, a former senior presidential secretary for economic affairs, for allegedly colludedwith Park in an unsuccessful attempt to force the vice-chairman of a Seoul-based conglomerate to quit, Yonhap news agency reported.
The opposition-controlled parliament passed an impeachment motion against Park on Friday, stripping her of her presidential duties and pushing Prime Minister Hwang Kyo-ahn into the role as government caretaker until the Constitutional Court rules whether she must step down permanently.
The impeachment came after millions of people demonstrated for weeks demanding the removal of Park, who prosecutors accuse of colluding with a longtime friend to extort money and favors from South Korea’s biggest companies and to give her confidante sway over government decisions.
Park has apologized but has denied any legal wrongdoing.
Prosecutors also said on Sunday that they have indicted Kim Chong, a former vice culture minister, on charges of colluding with Choi and her niece to force companies to donate sums of money to a sports foundation established by the niece, Yonhap reported.
Meanwhile, South Korea’s finance minister vowed on Sunday to keep the country’s economy “strong and stable” after the decision to impeach Park threatened to hurt growth.
“The Korean government is mindful of the severity of the current situation,” Yoo Il-ho told foreign reporters.
“I promise you that we will do everything we can to keep our economy strong and stable.”
South Korea has been struggling with soaring household debt, low birthrates and rising youth unemployment with its economy expanding at the slowest pace in recent years.
Yoo said the latest political crisis was another burden for an economy already hammered by external uncertainties such as falling oil prices and growing protectionist tendencies by major economies.
“The biggest vulnerability from the political issue is that it will put a dent on our sentiment,” he said, adding the Finance Ministry aimed to “successfully navigate through these tough times”.
The scandal that has engulfed the president and paralyzed her administration has focused on her friendship with Choi.
At a parliamentary hearing last week, one of the business leaders that made donations said it was hard for companies to reject any request from the government, calling it “the reality in South Korea”.
Yoo, who acknowledged the unhealthy ties between the state and South Korean firms, denied any “direct involvement” of the finance ministry in the ongoing scandal.