Arrest warrant issued for former presidential aide over corruption scandal

SEOUL, Sept. 28 (Yonhap) -- A Seoul court issued a warrant to formally arrest a former senior presidential aide on suspicions of receiving money in a corruption scandal involving a suspended savings bank. The Seoul Central District Court issued the warrant for Kim Du-woo late Tuesday, citing concern that he could flee. Kim was accused of taking bribes from a lobbyist for a troubled savings bank, which was under growing threat of suspension at the time. Kim allegedly received some 100 million won worth of cash and gift cards from Park Tae-kyu, the lobbyist, in return for his influence over financial regulators to soften inspections of the bank and to avoid suspension of operations. Busan Savings Bank, a top market player, was later eventually suspended due to inadequate liquidity. Prosecutors have reportedly secured Park's confession that he delivered some 100 million won in cash and gift cards to Kim last year on behalf of Busan Savings Bank. Kim has denied the allegations against him. Prosecutors plan to question Kim on whether he actually exerted influence on financial regulators over the bank. The court???s move came hours after President Lee Myung-bak called for stern handling of alleged bribery cases involving some of his close aides. "Indeed, we can't continue with this situation," Lee said during a Cabinet meeting, according to presidential spokesman Park Jeong-ha. "The closer relatives and aides are to the president, the more strictly they should be dealt with." Previous governments were plagued heavily by corruption cases in their final years in office. Lee's predecessor, the late President Roh Moo-hyun, committed suicide in 2009 amid a prosecution investigation into irregularities involving his relatives.