Prosecutors said Thursday they will summon the head of a local construction firm this week for questioning over the alleged misuse of company funds in state-funded overseas energy development projects under the previous administration.

Keangnam Enterprises Ltd., along with the state-run Korea National Oil Corp. and steelmaker POSCO, is facing a prosecution investigation over suspicious state-funded overseas energy development deals.

Prosecutors allege that Sung Woan-jong, a former lawmaker and the head of Keangnam, was at the center of the firm's misuse of 33 billion won (US$30 million) of the government's overseas resources development funds provided to the builder under the former Lee Myung-bak administration's energy diplomacy plan.

A slush fund worth 15 billion won, created alongside the misappropriation, reportedly went into the hands of Sung's family. 

The Seoul Central District Prosecutors' Office in charge of the energy diplomacy probe plan to call in Sung on Friday morning to question him over fund misappropriation and embezzlement charges, the prosecutors said. (Yonhap)