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Kim Hyeong-sik |
Kim, 44, allegedly told a friend to kill the creditor, identified as Song, 67, to whom he owed 500 million won ($493,000). The friend, surnamed Paeng, allegedly murdered Song at an office building the latter owned in Gangseo-gu, western Seoul, just past midnight on March 3.
According to Gangseo police, Paeng, who was also arrested, was Kim's close friend, but he owed Kim 70 million won. Paeng told police he killed Song because Kim promised to write off his debt.
Kim left the main opposition New Politics Alliance for Democracy after being detained on June 24, police said. Kim will lose his seat if convicted.
The councilor was re-elected at the June 4 local elections.
Paeng fled to China immediately after killing Song, police said. They later asked Interpol to help find him. Chinese police detained him in Shenyang on May 22, and he was extradited to Korea this month.
Police said they arrested Kim at his home, and that he did not resist.
Kim has denied commissioning the murder, police said, but Paeng has admitted to killing Song.
Kim reportedly borrowed the money from Song, said to be a millionaire, between 2011 and 2012. Song repeatedly asked Kim to repay the money, but he failed to do so.
As the councilor was preparing his re-election bid, Song threatened to prevent him winning. Kim then asked his friend to kill him, according to police.
Kim and Paeng reportedly used phones acquired under fake names to set up the murder. After murdering Song, Paeng burned his clothes and threw away a hammer he used.
After Paeng was arrested in China, he contacted Kim, who allegedly told him to commit suicide.
Paeng tried to kill himself several times while in Chinese custody, police said.