Special prosecutor probes budget diversion for presidential residence, may target Choo Kyung-ho

A special prosecutor's team is intensifying its investigation into allegations of improper budget diversion for the presidential residence under the Yoon Suk-yeol administration. The probe has expanded to include the Ministry of Planning and Budget (formerly the Ministry of Economy and Finance) and former presidential office economic and financial officials, with forced searches conducted.

The investigation centers on suspicions that the presidential office colluded with the Ministry of Planning and Budget to illegally divert approximately 2.8 billion won (about $2 million USD) from the Ministry of Public Administration and Security's budget. This money was allegedly used to pay an unqualified company for the presidential residence relocation project in 2022.

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Regarding the illegal diversion of funds during the relocation of the presidential residence, we have executed search and seizure warrants on the residences of four individuals, including officials from the Ministry of Planning and Budget and former presidential office economic and financial secretaries, to confirm collusion with the Ministry of Planning and Budget.

Investigators are examining evidence, including text messages sent by Yoon Jae-soon, a former presidential office secretary for general affairs, to the Ministry of Public Administration and Security, indicating that the Ministry of Planning and Budget had "finished its arrangements." This suggests the ministry may have tacitly approved the budget diversion.

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The Ministry of Planning and Budget tacitly approved the budget diversion.

The probe is now scrutinizing whether the investigation will reach higher-ranking officials. Choo Kyung-ho, who was the Minister of Economy and Finance at the time and is now the mayor-elect of Daegu, is a key figure of interest. The special prosecutor team is reportedly seeking to determine if Choo's influence played a role in the alleged budget manipulation.

Previously, the special prosecutor's team had arrested Kim Dae-ki, former chief of staff to the president, and Yoon Jae-soon on charges of abuse of power, based on evidence that funds designated for public administration facility maintenance were diverted for the presidential residence construction. Former Minister of Public Administration and Security Lee Sang-min was also questioned as a suspect in relation to the case.

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Funds for the maintenance of aging facilities of the Ministry of Public Administration and Security were diverted to the presidential residence construction.