Sung Wan-jong, former chairman of Keangnam Enterprise Ltd., denied Wednesday allegations he engaged in irregularities related to former President Lee Myung-bak’s overseas resources development projects. Sung also denied at a news conference that he was one of the so-called “MB men,” referring to businessmen and politicians closely associated with the former president.

“I never abused my authority as a public servant,” Sung said. “Contrary to media reports, I am not one of the ‘MB men.’ How could a victim of the Lee administration become an MB men?” he added.

Last Monday, prosecutors sought a preliminary arrest warrant for Sung for the suspected embezzlement of company funds. He has been suspected of taking 80 billion won ($74 million) in government loans by manipulating the company’s financial statement. He also allegedly used the funds to create a slush fund worth 25 billion won.

The Korean Board of Audit and Inspection, meanwhile, launched a fully-fledged investigation into the former government’s troubled resource development project, visiting eight countries, including Australia and Canada.

By Yeo Jun-suk (jasonyeo@heraldcorp.com)