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Eastar Jet founder faces arrest over embezzlement
Lee Sang-jik, an independent lawmaker and the founder of cash-strapped Eastar Jet, speaks to reporters at the Jeonju District Court, North Jeolla Province, April 16, after a hearing on his charges of violating the Public Official Election Act. At the time, Lee said he was willing to cooperate with the prosecution's separate investigation into his alleged embezzlement and breach of trust. Yonhap
By Jun Ji-hye
By Jun Ji-hye
The National Assembly voted for a motion, Wednesday, to allow prosecutors to arrest independent lawmaker Lee Sang-jik, the founder of cash-strapped Eastar Jet, who has been under investigation on charges of breach of trust and embezzling around 50 billion won (45 million).
The motion was passed in a 206-38 vote at a plenary session of the Assembly, with 11 abstentions.
The vote came after district prosecutors in Jeonju, North Jeolla Province, filed for a warrant for Lee's arrest, April 9, on the embezzlement and breach of trust charges, and alleged violation of the Political Party Act.
Lawmakers here have the privilege of being exempt from arrest while the Assembly is in session. Parliamentary consent is essential for their arrest unless they are caught red-handed.
A court can issue an arrest warrant against sitting lawmakers only after the Assembly agrees to it.
Prosecutors believe that Lee had conspired with his nephew, who was in charge of financial affairs at the budget carrier, to embezzle Eastar Jet's funds in December 2015 to give stakes in the company to Lee's daughter and son.
That year, Lee's daughter, who was in her 20s, and teenage son became the largest shareholders of the low-cost carrier.
Lee also faced charges of using company funds to lease a Porsche sports car worth more than 100 million won for his daughter.
Prosecutors estimate the amount of damage that Lee and his family caused the company and its affiliates at about 50 billion won.
Lee acknowledge that he had used company funds to lease the expensive car for his daughter, but claimed that he did so in consideration of her safety, as she was previously involved in a traffic accident. However, the lawmaker did not specify how a sports car could be safer to drive than other types of automobiles.
He also faced fresh suspicions earlier in the day of ordering Eastar Jet staffers in charge of personnel affairs to recruit certain candidates to be flight attendants.
According to industry officials and a civic group, Lee and Choi Jong-gu, the former CEO of the company, meddled in the firm's recruitment process between 2014 and 2015 by recommending certain candidates, after being asked for favors by influential figures including senior lawmakers, diplomats, Navy admirals and businessmen.
The civic group filed a complaint with the prosecution earlier in the day against Lee and Choi as well as current CEO Kim You-sang on charges of obstructing business.
“It is alleged that these people ordered officials to select certain candidates even when their qualifications did not meet the company's employment standards,” the group said in a statement.
In response, an Eastar Jet official said he could not confirm the alleged meddling in the recruitment process, claiming it occurred some time ago.
Lee, who won an Assembly seat for his second term on the ticket of the ruling Democratic Party of Korea in April last year, left the party Sept. 24, amid a mounting controversy over Eastar Jet's massive layoffs.
The layoffs came after Jeju Air gave up plans to acquire the debt-ridden budget carrier in July due mainly to growing uncertainties in the aviation industry caused by the prolonged COVID-19 pandemic.