Prosecution begins probe into suspicions over presidential retirement home

Prosecutors launched an investigation Thursday into allegations of irregularities in President Lee Myung-bak's controversial project to build a retirement residence for himself.

The project has been the target of opposition attacks following revelations that the land for the site in Naegok-dong, on the southern edge of Seoul, was purchased under the name of Lee's son, Si-hyung. The project also came under fire due to the purchase of a large plot of land with state funds for use as security facilities for the residence.

The probe came a day after the main opposition Democratic Party filed a complaint with the prosecution, accusing Presidential Chief of Staff Yim Tae-hee, Lee Si-hyung and three others of squandering government money and using the wrong name in a real estate transaction.

The opposition has claimed that the presidential office purchased the site for the security facilities for too high a price in what it said was a scheme to help Lee Si-hyung buy the plot of land for the residence for a below-market price.

The presidential office has flatly rejected the allegations.

It has stressed that the residence site was purchased under Lee Si-hyung's name for security reasons as a contract bearing the president's name would lead to the site's disclosure and cause other problems.

In an effort to calm criticism, the office said last week that President Lee would take over ownership of the land from his son and that it would consider downsizing the plot of land reserved for security facilities.

Despite the explanations, opposition parties kept up their attack.

On Monday, President Lee ordered an "all-out review" of the project in a move seen effectively as its cancellation. Aides said Lee is considering moving into his existing private house in Nonhyeon-dong, a bustling neighborhood in southern Seoul, after leaving office in early 2013.
The presidential security service chief in charge of the project has offered to resign. (Yonhap)

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