South Korea pension fund chief detained in corruption scandal probe

Investigators are looking into whether the chairman of South Korea’s pension fund used his position to support the merger of two Samsung Group affiliates while he was head of the Ministry of Health and Welfare.

Photo by: Reuters
Photo by: Reuters

Chairman of the National Pension Service (NPS), Moon Hyung-pyo served as South Korea's minister of health but was discharged in 2015 following criticisms over the handling of a MERS outbreak.

South Korean prosecutors put the chairman of the world's third-largest pension fund under emergency arrest on Wednesday in a widening influence-peddling scandal that has led the impeachment of President Park Geun-hye.

The arrest comes as South Korea is still reeling from a corruption scandal after Park was accused of colluding with her long-time friend Choi Soon-sil to pressure big companies to make contributions to non-profit foundations.

The special prosecutor’s office is looking into whether Moon Hyung-pyo pressured the National Pension Service (NPS) to support the 8 billion dollars merger of two Samsung Group affiliates. The deal took place while he was head of the Ministry of Health and Welfare, which runs the pension fund.

Moon's home was raided on suspicion of abuse of power.

U-Jean Jung joins TRT World from Seoul, South Korea.

TRTWorld and agencies