The prosecution on Thursday indicted Lee Sang-deuk, elder brother of President Lee Myung-bak, for allegedly receiving kickbacks from the management of ailing savings banks in exchange for granting them business favors through influence-peddling.

Lee has been detained since July 10 and will be the first sibling of an incumbent president to stand before the court.

According to the special investigation unit at the Supreme Prosecutors’ Office, Lee is suspected of receiving more than 300 million won ($267,000) from Lim Suk, chairman of Solomon Savings Bank in 2007, right before his brother’s presidential election. Lee is also believed to have pocketed more than 350 million won from Kim Chan-kyong, chairman of Mirae Mutual Savings Bank, in December 2007.

Investigators said that Lee allegedly received the money in exchange for using his influence in shielding the ill-performing banks from a state shutdown order. Mirae and Solomon savings banks were ordered to close in May due to poor fiscal performance.

The former six-term lawmaker is also suspected to have raked a total of 150 million won from Kolon Group, for which he served as an adviser.

The prosecutors said they will study whether the money Lee received was used in creating a slush fund to support his younger brother’s election campaign.

By Bae Ji-sook (baejisook@heraldcorp.com)