Kang Man-soo, top policymaker on the economy under former President Lee Myung-bak, has become latest to come under prosecution scrutiny suspected of acting as a lynchpin in various favoritism cases and excesses as the head of state-run Korea Development Bank in charge of running Daewoo Shipbuilding & Marine Engineering Co. (DSME).

The special investigation team on Tuesday raided Kang’s house in Daechi-dong, Seoul, and the office of an investment advisory company he heads. The investigation team also searched a construction company and a bio company suspected of shady business relations and favoritism through connection with Kang.

Prosecutors confiscated computer and recorded files, business contract and personal records, financial and management documents. Kang served as the chairman of KDB Financial Group, the largest shareholder of DSME, and CEO of KDB from 2011 to 2013. He was an influential figure in the Lee Myung-bak administration, serving as the minister of Strategy and Finance and Special Adviser to the President for Economy to spearhead economic policies.

The prosecution is said to have found evidence that Kang had been behind various wrongdoings committed by former DSME CEOs, Nam Sang-tae and Ko Jae-ho. It also suspects Kang may have profited from suspicious business arrangement between the shipbuilder and a construction company.

It also believes Kang may be behind the questionable deals regarding a certain bio company that suddenly expanded under the term of President Lee.

KDB has been under fire for condoning reckless management by CEOs it had seated that led to accounting scam and losses of more than $4 billion in 2015. Former presidents Min Euoo-sung and Hong Ky-ttack could be the next probe target.

By Lee Hyun-jung

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]