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Kim Hyeong-sik |
Kim accompanied the man, surnamed Paeng, to Incheon International Airport and told him to hide out in China, providing him with millions of won, police said.
The councilor has flatly denied his involvement in the homicide case, but police say they have secured enough evidence that he commissioned Paeng to kill the creditor, identified as Song, 67, on March 3.
After being arrested in Shenyang in May, Paeng bribed a Chinese officer to make an unauthorized phone call to Kim in Seoul, police said, citing testimony from Paeng.
He was extradited to Korea in early June, and was jailed immediately.
Kim has claimed Paeng is lying, and that he had nothing to do with the murder.
However, police suspect he commissioned the killing.
According to police, Kim borrowed some 520 million won ($500,000) from Song 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 from winning the election. Kim then asked his friend to kill Song, police said.
He allegedly used a phone registered under a fake name when he contacted Paeng.
Police said he provided Paeng with a stun gun and an ax after setting up the murder.
Paeng allegedly murdered Song at an office building the latter owned in Gangseo-gu, western Seoul, just past midnight.
After the murder, the councilor ran in the June 4 local elections and was re-elected. His campaign office was located just across from Gangseo Police Station.
Kim was arrested at his home last week.