South Korea urgently arrests chairman of national pension fund

South Korea's special prosecutor team investigating the political scandal surrounding President Park Geun Hye has just urgently arrested the chairman of the National Pension Service (NPS).

South Korean protesters dressed as Santa Claus take to the streets to demand President Park Geun Hye's resignation - Photo: Reuters

Reuters news agency reported that prosecutors did not provide details of the arrest of Mr. Moon Hyung Pyo - Chairman of the NPS Foundation, which took place this morning, December 28. However, earlier this week the prosecutor's office said they had searched Mr. Moon's home.

Prosecutors said they are investigating whether Mr Moon pressured the pension fund to support an $8 billion merger of two Samsung Group affiliates last year when he headed the Health and Welfare Ministry, which runs the NPS.

Some investors have criticized the merger, saying it is intended to strengthen Samsung's management's control over shareholders.

Investigators are also examining whether Samsung's support for businesses and nonprofit foundations run by President Park's close friend, Choi Soon-sil, was related to NPS's support for the merger of Samsung's affiliate.

Last week investigators also raided the offices of the NPS pension fund, the world's third largest.

Under Korean law, prosecutors can urgently arrest a suspect without a warrant within 48 hours to serve the investigation./.

According to Tuoi Tre