Corruption Scandal
Brother of Ex-President Roh Faces Investigation
A corruption scandal over the 2006 sale of Sejong Securities to the National Agricultural Cooperative Federation (NACF) is rocking the country amid the global financial crisis. The public just sighs as a scandal erupts whenever power is transferred from one government to another. The scandal shows that South Korea still has a long way to go before winning the fight against corruption.
The President and the ruling elite should make sure that their family members and close aides are not involved in influence peddling or any other corruption cases. Regrettably, presidents of South Korea have never been successful in preventing their relatives from becoming implicated. Former President Roh Moo-hyun is no exception. He retired in February after winding up his five-year tenure and handing over power to his successor Lee Myung-bak.
Nine months after his retirement, Roh will soon have to see his brother, Roh Geon-pyeong, complying with a summons by prosecutors for questioning over the scandal. What's really disappointing is that the former liberal president, who was once called Mr. Clean due to his much-avowed anti-corruption campaign, is not free from such a scandal.
Many people had hoped that the maverick president would set a new example as a clean leader. But the public hope has been betrayed because of his elder brother and some of his confidants. Although he was not directly engaged in the scandal, Roh cannot avoid moral and ethical responsibility for not keeping his house clean.
His brother Geon-pyeong faces allegations that he had lobbied to expedite the sale of the brokerage house to the NACF, or Nonghyup in Korean. He admitted that he had contacted then-NACF head Chung Dae-kun at the request of former Sejong Capital CEO Hong Ki-ok. The prosecution has already arrested Chung Hwa-sam, one of Roh's high school alumnae and his brother Chung Kwang-yong on suspicion of taking bribes in exchange for peddling influence for the sale of Sejong Securities to Nonghyup.
There are growing suspicions that Geon-pyeong played a crucial role of pressuring the NACF chief to purchase the securities firm. Investigators confirmed that Chung Hwa-sam and his brother accepted about three billion won from Sejong in return for their lobbying. They seem to believe that Geon-pyeong also made some financial gains as a result of facilitating the deal.
The core of the scandal is that Sejong allegedly mobilized then-President Roh's brother and his two ``friends'' in a bid to sell the company at a price higher than its market value. The lobbying was successful, and those involved in influence peddling were given rewards that the prosecution claims were bribes. In addition, Park Yeon-cha, a strong supporter and long-time financier of President Roh, earned 10 billion won in profit by buying Sejong stocks before the NACF's acquisition deal. The prosecution is investigating Park to confirm if he exploited insider information about the deal to make a profit.
The law enforcement authorities should conduct fair and thorough investigations into the scandal to get to the bottom of it. The country should not compromise its anti-corruption campaign. It can never join the ranks of advanced countries without establishing transparent and accountable governance. The Lee administration must double its efforts to ensure a clean government.