Prosecutors on Thursday formally arrested a former chief of South Korea's rail operator on suspicions of bribery in connection to a now-scrapped urban development plan in Seoul.

The Seoul Central District Court issued a warrant to arrest Huh Joon-young, who led the Korea Railroad Corp. from 2009 to 2011, noting there are considerable reasons to believe he committed the crimes and could possibly destroy evidence.

The 63-year-old is accused of receiving some 20 million won of illegal political funds from his aide, identified only by his surname Sohn, in return for helping him clinch business contracts for his waste management company.

KORAIL was behind a project in Yongsan, located in the heart of Seoul. The 31 trillion-won project was meant to transform the area near the key railroad station into an international business hub.

The project fell through in 2013.

Huh, who served as South Korea's chief of police before becoming the head of the rail operator, has denied any involvement in regards to Sohn's alleged bribery scheme. (Yonhap)