Controversy over the burgeoning probe around POSCO’s alleged irregularities has spread to entrepreneur-turned-politician Rep. Ahn Cheol-soo, who is accused of rubberstamping the steelmaker’s purchase of a debt-ridden company in 2010 while serving as an outside board member there.

Ahn, who served on POSCO’s board from 2005 to 2011, is accused of oversight lapses as an external observer by approving the steelmaker’s 159 billion won ($142 million) purchase of Seongjin Geotech Co., a landscape equipment-maker that had a debt ratio of 1600 percent.

Supporters of Ahn, who had run in the 2012 presidential race, claimed the charges were politically motivated and initiated by members of the governing Saenuri Party to discredit the lawmaker.

“Rep. Ahn has not received any call from prosecutors or other law enforcement bodies,” an aide to the lawmaker said. “We suspect that the controversy (over Ahn) began a few days ago after some right-leaning television broadcasters ran some stories related to the matter.”

Most of the stories in South Korean news outlets do not mention an attributable source.

The charges come as prosecutors are accelerating the probe into POSCO’s former executives for allegedly running a slush fund oversees to evade taxes here and for allegedly misappropriating company funds. Prosecutors have barred ex-POSCO chief Chung Joon-yang from leaving the country.

Ahn said he would respond to the allegations in the coming days after reviewing related records this week.

But Ahn added that he had already denied the allegations during the presidential race when he had mulled running as an independent candidate before withdrawing his candidacy.

By Jeong Hunny ()


koreaherald@heraldcorp.com