Police on Thursday banned KT&G CEO Min Young-jin and seven others from leaving the country pending a bribery inquiry into the state-run tobacco and ginseng products maker.

KT&G is suspected of giving money to government officials over a real estate deal conducted in 2010. One of the civil servants, identified by the surname Lee, was detained on Wednesday.

The police suspect that Min had knowledge of the developments as the deal was overseen by the company’s real estate project team controlled directly by the CEO’s office.

The police said that Lee admitted to receiving money from a company that was acting on behalf of KT&G, and that the state-run company and its agent negotiated the issue.

Lee is said to have received 660 million won ($590,000) over two months from October 2010 when he was working at the city hall of Cheongju, North Chungcheong Province, in return for aiding KT&G in selling its land in the area.

“As circumstantial evidence indicating that KT&G executives were deeply involved in the case has been secured, whether the case is linked to high-level officials will be looked into,” a police official told the local media.

The investigation has shown that KT&G requested 40 billion won for its land, while Cheongju government offered 25 billion won.

When the deal fell apart, KT&G requested its agent to find a connection within the city hall. Lee, who acted as the inside connection, received the money from the agent and helped KT&G close the sale at 35 billion won.

So far, police have booked five individuals, including two KT&G officials, involved in the case.

By Choi He-suk (cheesuk@heraldcorp.com)