Prosecutors on Tuesday questioned a former chairman of the state-run Korea Development Bank in connection with corruption allegations surrounding troubled Daewoo Shipbuilding & Marine Engineering Co.

Min Euoo-sung, who led the bank from 2008 to 2011, was grilled over allegations a former head of a local ad agency lobbied him to request the reappointment of Nam Sang-tae, ex-chief of Daewoo Shipbuilding. Nam headed the shipyard from 2006 to 2012.

The head of the ad agency was indicted in September on charges of receiving money from the shipbuilder in return for the request, but a local court acquitted her in February. 

The prosecution has appealed the ruling. 

A prosecution official said Min was called in to bear witness to the suspicions, adding that they have not found additional criminal allegations. 

Last month, creditors of Daewoo Shipbuilding announced a fresh rescue package for the ailing shipbuilder, the second round of bailouts for the shipyard that has been suffering from severe liquidity problems over heavy losses in its offshore projects.

After weeks of negotiations, Daewoo Shipbuilding's bondholders agreed to the rescue package, paving the way for the shipyard to receive a fresh cash injection of 2.9 trillion won. (Yonhap)