The prosecution has commenced investigation into Park Geun-ryoung, the estranged sister of President Park Geun-hye, upon a report by Lee Seok-su, a special inspector under the presidential office, reports said Tuesday.

Lee filed the report on July 21 against the younger Park and her unidentified acquaintance. The Seoul Central District Prosecutors’ Office is looking into the case.

Park Geun-ryoung, 62, is suspected of exaggerating her influence, borrowing 100 million won and failing to pay some of it back. She was fined 5 million won last year on different fraud charges.

Her husband, Shin Dong-wook, was quoted as telling Yonhap News that while she borrowed the money and failed to pay some 40 million won, she has been paying interest.

Reports said Lee had questioned the younger Park at his office in central Seoul last month.

The former head of the Korean Children’s Center has been estranged from President Park over differences on a number of issues for decades, including her marriage to Shin who was jailed for putting up defaming posts on the older Park in 2012.

Investigation into Park Geun-ryoung is to be the first implementation of the special inspector’s role since the system was first introduced in 2014.

Last week, Lee also referred the case of senior secretary Woo Byung-woo for abuse of power and other corruption allegations. Reporting a case is considered a tougher action than referring a case.

Lee himself has been embroiled in controversy after reports that he illegally leaked information about his investigation into Woo to a local media outlet.

The special inspector, named by the president, can investigate the president’s spouse and close relatives as well as senior members of the presidential secretariat when corruption allegations surface. The inspector can refer or report the case to the prosecution when a certain amount of evidence is gathered. 

(khnews@heraldcorp.com)