The prosecution placed travel bans on Lee Sang-deuk, a former member of the ruling Saenuri Party and the older brother of the former president Lee Myung-bak, on charge of receiving illegal political funds from POSCO.
It is found out by the prosecution that the partner companies run by Lee's aides were given special preference by Chung Joon-yang, former chairman of the steel maker, and raked in billions of won. A large portion of the money was allegedly used for Lee's political funds.
The prosecution said it confiscated financial documents from the two partner companies located in Pohang, a city in North Gyeongsang Province.
One chief of the company, surnamed Chei, served as an aide to Lee while taking up the post of a chief for a religious group in the region. The prosecution captured the evidence that Chei who initially run a furniture store suddenly became a chief of POSCO’s partner company with the help of Lee. Some of the company's earnings were allegedly used for political funds for Lee’s election.
