By Lee Kyung-min
The prosecution is seeking to freeze the assets of former President Lee Myung-bak registered under "borrowed" names in the latest move to expedite the return of what it believes is wealth accumulated through illicit means.
The Seoul Central District Prosecutors' Office is expected to file an injunction with the Seoul Central District Court against Lee whose estimated assets include land worth over 10 billion won in Bucheon and a vacation house in Gapyeong, both in Gyeonggi Province, and cash and stocks in accounts opened under the names of his close aides
The move follows a judgment that an earlier decision to freeze only his personal assets _ a residence in Gangnam, southern Seoul, worth at least 5.7 billion won _ would be insufficient to recover "illicitly secured" assets. Lee is set to stand trial on 12 charges including bribery involving 11 billion won and embezzlement of over 35 billion won.
Under the law, wealth accumulated by civil servants through illegal means is confiscated and returned to state coffers. The statute of limitations was extended to 10 years from three years in 2013, to prevent defendants from dispersing assets before a conviction as a means not to comply with a court-ordered confiscation.
If the court grants the request, Lee will not be able to sell or transfer the ownership of his property, or withdraw or transfer money from his bank accounts. The prosecution earlier sought a similar injunction against former President Park Geun-hye, which was granted. The court then froze 5.8 billion won of her assets including 1 billion won in bank accounts and 3 billion won in checks.
Meanwhile, the prosecution questioned Lee's son, Si-hyung, Tuesday, over alleged embezzlement and breach of trust involving DAS, a corruption-ridden car parts maker through which Lee Myung-bak is believed to have managed a slush fund. The move, which further corners the detained former President amid his continued refusal to answer questions, came five weeks after his son underwent 16 hours of questioning in late February.
Prosecutors believe DAS and its affiliates illegally helped SM, a DAS subsidiary that sold and distributed car parts, in which the junior Lee holds a 75 percent stake, and DAON, an SM-acquired car parts maker. They said DAS gave 10.8 billion won to DAON, a financially troubled company that financial institutions would not lend money to. It also agreed to a 15 percent unit item cost increase between 2016 and 2017. A DAS affiliate, Kumkang, run by Lee Young-bae, who managed the personal assets of Lee Myung-bak, also gave 1.6 billion won to DAON in late 2016. These, prosecutors say, are strong indications that the junior Lee was given business favors from his father, who they believe is the real owner of DAS, owned by his older brother Lee Sang-eun on paper.
Cheonggye Foundation auditor Kim Chang-dae, a close acquaintance of the former president, recently told prosecutors that Lee owned 4.2 percent of DAS shares registered under his name. The admission further corroborates the prosecution's case that Lee is the real owner of DAS, a key supposition on which most of its case against him is based. Kim also confessed to giving 300 million won in dividends paid between 2014 and 2016 to Lee Si-hyung.
Prosecutors questioned Lee over an allegation that a DAS-affiliated real estate agency made 13 billion won in profits in "new town" urban city development projects, due to the influence of his father when he was Seoul Mayor between 2002 and 2006.
The controversy surrounding DAS re-emerged in 2013 when Lee Si-hyung became a senior-executive at the firm only four years after beginning his career there, with help from his father. Lee attempted to further consolidate his grip on the firm by interfering in company management including financial issues.
The prosecution is seeking to freeze the assets of former President Lee Myung-bak registered under "borrowed" names in the latest move to expedite the return of what it believes is wealth accumulated through illicit means.
The Seoul Central District Prosecutors' Office is expected to file an injunction with the Seoul Central District Court against Lee whose estimated assets include land worth over 10 billion won in Bucheon and a vacation house in Gapyeong, both in Gyeonggi Province, and cash and stocks in accounts opened under the names of his close aides
The move follows a judgment that an earlier decision to freeze only his personal assets _ a residence in Gangnam, southern Seoul, worth at least 5.7 billion won _ would be insufficient to recover "illicitly secured" assets. Lee is set to stand trial on 12 charges including bribery involving 11 billion won and embezzlement of over 35 billion won.
Under the law, wealth accumulated by civil servants through illegal means is confiscated and returned to state coffers. The statute of limitations was extended to 10 years from three years in 2013, to prevent defendants from dispersing assets before a conviction as a means not to comply with a court-ordered confiscation.
If the court grants the request, Lee will not be able to sell or transfer the ownership of his property, or withdraw or transfer money from his bank accounts. The prosecution earlier sought a similar injunction against former President Park Geun-hye, which was granted. The court then froze 5.8 billion won of her assets including 1 billion won in bank accounts and 3 billion won in checks.
Meanwhile, the prosecution questioned Lee's son, Si-hyung, Tuesday, over alleged embezzlement and breach of trust involving DAS, a corruption-ridden car parts maker through which Lee Myung-bak is believed to have managed a slush fund. The move, which further corners the detained former President amid his continued refusal to answer questions, came five weeks after his son underwent 16 hours of questioning in late February.
Prosecutors believe DAS and its affiliates illegally helped SM, a DAS subsidiary that sold and distributed car parts, in which the junior Lee holds a 75 percent stake, and DAON, an SM-acquired car parts maker. They said DAS gave 10.8 billion won to DAON, a financially troubled company that financial institutions would not lend money to. It also agreed to a 15 percent unit item cost increase between 2016 and 2017. A DAS affiliate, Kumkang, run by Lee Young-bae, who managed the personal assets of Lee Myung-bak, also gave 1.6 billion won to DAON in late 2016. These, prosecutors say, are strong indications that the junior Lee was given business favors from his father, who they believe is the real owner of DAS, owned by his older brother Lee Sang-eun on paper.
Cheonggye Foundation auditor Kim Chang-dae, a close acquaintance of the former president, recently told prosecutors that Lee owned 4.2 percent of DAS shares registered under his name. The admission further corroborates the prosecution's case that Lee is the real owner of DAS, a key supposition on which most of its case against him is based. Kim also confessed to giving 300 million won in dividends paid between 2014 and 2016 to Lee Si-hyung.
Prosecutors questioned Lee over an allegation that a DAS-affiliated real estate agency made 13 billion won in profits in "new town" urban city development projects, due to the influence of his father when he was Seoul Mayor between 2002 and 2006.
The controversy surrounding DAS re-emerged in 2013 when Lee Si-hyung became a senior-executive at the firm only four years after beginning his career there, with help from his father. Lee attempted to further consolidate his grip on the firm by interfering in company management including financial issues.
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