Parliament to begin probe into savings bank scandal

(ATTN: RECASTS headline, lead; ADDS more details in para 6)
By Kim Eun-jung
SEOUL (Yonhap) - The National Assembly on Wednesday approved a plan by a parliamentary committee to begin an investigation into a massive scandal involving troubled savings banks in a bipartisan effort to get to the bottom of the case and to work out measures to prevent a similar incident from occurring in the future.
Earlier this month, the ruling and opposition parties agreed to launch the special committee to conduct a joint investigation into the corruption scandal and work out assistance measures for victims of irregularities by savings banks.
The scandal centers on allegations that some savings banks engaged in a string of irregularities, including extending illegal loans, and bribed financial regulators and other people to seek their influence to avoid punishment.
The problems surfaced after South Korea's financial regulator in February suspended operations of eight savings banks, including Busan Savings Bank and its four units, after their finances deteriorated as illicit loans for construction projects soured amid a real-estate slump.
Victims have called for compensation from the government and punishments for those responsible.
The parliamentary committee can officially begin a 46-day operation as its plan for the investigation got approval during a plenary session.
The Supreme Prosecutors' Office initially focused on financial illegalities by the banks, but later shifted to ranking government officials and politicians who allegedly took bribes to help the banks' attempts to cover up their deteriorating financial situations.
So far, prosecutors have indicted over 30 bank executives and state auditors and summoned several former politicians and presidential aides on suspicion of influence-peddling.