Chun’s Brother Arrested in Korea Scandal

The younger brother of former President Chun Doo Hwan was arrested early today on corruption and embezzlement charges in connection with a multimillion-dollar financial scandal, South Korean prosecutors said.

Court sources, speaking on condition of anonymity, said warrants for the arrest of Chun Kyung Hwan and three of his aides and associates were issued shortly after midnight and served early this morning.

Today’s arrests brought to nine the number of suspects in custody in the scandal involving the semi-official Saemaul development movement.

Five suspects, including two of Chun Kyung Hwan’s brothers-in-law, were jailed Tuesday on charges of embezzlement and fraudulent land sales.

All nine defendants are either Saemaul officials or former leading members of the nationwide organization.

$9.3 Million Embezzled

Prosecutors said the younger Chun, who led Saemaul between 1981 and 1987, embezzled at least $9.3 million and built up a fortune in land, stocks and business interest.

Senior prosecutor Kang Won Il, who has headed the investigation, said Wednesday that the younger Chun would initially face six charges, including corruption, embezzlement, tax evasion and violation of laws governing special economic and financial crimes.

If convicted, Chun faces punishments ranging from 10 years in prison to the death sentence.

“We have enough evidence to incriminate them,” Kang said after questioning the four men for more than 36 hours.

Chun Doo Hwan, who has not been implicated, is on a private tour of the United States. He met with President Reagan at the White House last week.

Opposition parties are demanding that he return to Seoul immediately to explain his role in the scandal. Opposition leaders have charged that the former president was involved in the affair.

To Promote Development

Saemaul, founded in 1971 to promote urban and rural development, evolved into a powerful organization involved in activities ranging from building model communities to promoting urban cleanup campaigns.

Prosecutors say the younger Chun, who was appointed by President Chun to head the group in 1981, used his position to divert government and private donations, sell influence and pressure businesses to make gifts of money, land and stocks.

He resigned as Saemaul chief in 1987 after being linked to organized crime. He went to Japan on March 18 when news of the government probe surfaced, but returned two days later to face questioning.

During the inquiry, about 200 government officials and business leaders have been questioned about corruption and a possible cover-up to protect former President Chun and his family. None of them has been formally implicated.

The authoritarian Chun administration has long been suspected of widespread corruption. But during its term, criticism of the president and his family were not tolerated and allegations of corruption were routinely ignored.