Probe of Ex-Mayors Alleged Stock Rigging Demanded
By Park Chung-a
Staff Reporter
Uri Party lawmakers Monday called for a National Assembly's probe into the suspicion that Lee Myung-bak, a leading presidential contender of the main opposition Grand National Party manipulated stock prices of a company in 2001. But the Lee camp immediately dismissed the claim as ``typical mud slinging.’’
Rep. Park Young-sun and Rep. Song Young-kil made the claim at a National Assembly session Monday afternoon as the former Seoul mayor registered his candidacy for the GNP nomination race.
They showed prosecution’s record that Lee was involved in manipulating the stock price of Optional Ventures by using company bank accounts of BBK and LK e-bank, which Lee established in February 2000 along with Kim Kyung-joon.
LK e-bank, a cyber financial firm, is a subsidiary of BBK, now defunct investment consulting firm whose president Kim later changed its name to Optional Ventures and embezzled 39 billion won of company money in late 2001 after manipulating its stock prices.
Kim has been arrested on charges of embezzlement in the United States.
Park, the anchor woman-turned lawmaker claimed that the 38 company bank accounts including those of BBK and its subsidiary LK e-bank were used for stock price manipulation of Optional Ventures. She presented prosecution’s record on the investigation over BBK stock manipulation as evidenc backing her claim
The lawmaker also said that Lee wrote ``BBK is my asset’’ in a letter to Kim Kyung-joon, the former Korean-American president of BBK on Nov. 2, 2001, lending credence to the claim that BBK and Lee are deeply related to each other.
These are very serious allegations that, if proven true, will make it impossible for Lee to continue his campaign for the GNP nomination, let alone the presidency.
``Up to now, BBK has been known mainly for its embezzlement scandal. However stock price manipulation accounts for an important part of it. A special investigation team should be launched to clarify Lee’s charges,’’ said Park at the National Assembly’s interpellation of government ministries.
``Lee was the largest shareholder and a CEO of LK e-bank which was marked as one of the bank accounts used for stock price manipulation. Even if Lee did not know that the company bank account was used for such purpose, he should take responsibility as the CEO of the company,’’ said Park.
Park also emphasized that Kim Baek-joon, who worked as a managing director of LK e-bank at the time of stock manipulation and one of Lee’s close aides in an election campaign for Seoul mayor in 2002, worked as a risk manager at BBK.
Meanwhile, Park Hyung-joon, spokesman of Lee, flatly denied the claim saying that it is a typical political mud slinging. Park said Lee does not need to make explanation anymore since the prosecution’s investigation already had proved that Lee is free of charges on the allegation.
Last week, the former Seoul mayor dismissed the allegation that he has any connection with BBK. He said that he does not have any direct or indirect connection with BBK and have a single stock regarding the BBK.