President’s Buddy Probed Over Influence-Peddling
By Kim Rahn
Staff Reporter
Prosecutors raided the home and office of Sejoong Namo Tour Chairman Chun Shin-il, one of the closest confidants of President Lee Myung-bak, Thursday, to look into his alleged influence peddling in a tax audit.
Some 20 investigators confiscated computers and financial documents from offices of Sejoong and its affiliate Sesung Air Service in central Seoul, and examined Chun's personal accounting books and email at his home.
Chun is suspected of having lobbied ranking tax officials to suspend the Seoul Regional Tax Office's audit into the businesses of Park Yeon-cha, the scandal-ridden CEO of shoemaker Taekwang, last year. The two are known to be ``blood brothers.''
It was alleged that Chun received money from Park in return for the influence peddling, despite its eventual failure. The prosecution imposed an overseas travel ban on Chun in March and examined his bank accounts.
Chun allegedly discussed ways to stop or reduce the audit together with Kim Jung-bok, former chief of the Jungbu Regional Tax Office and Park's in-law, and Lee Jong-chan, former secretary to President Lee. Prosecutors are looking into Kim's bank accounts, and will summon the three men soon.
As alumni of Korea University, Chun and President Lee have been friends for more than 40 years. Chun was a strong supporter of Lee during his presidential campaign, and it is alleged that he liquidated a huge amount of stock ahead of the election to finance Lee's run. He is also said to have given three billion won in a special donation to the Grand National Party (GNP) as a proxy for Lee.
The opposition Democratic Party urged the prosecution to look into the alleged financial deals made between the two during the campaign, but prosecutors made it clear that Lee's campaign financing was not the focus of the ongoing investigation.
Investigators also raided offices and homes of 15 unidentified figures with whom Chun has had questionable money transactions.
As part of the probe, the prosecution summoned several taxmen who were in charge of the audit into Park's companies between last July and October, Wednesday. The questioning came hours after it raided the Seoul Regional Tax Office and the National Tax Service (NTS).
The regional office's investigation team led by director Cho Hong-hui detected Park's tax evasion and the lobbying attempt, and asked the prosecution to indict Park last November, leading to the probe into the corruption scandal. However, the team allegedly reduced the amount of tax Park evaded in its request and omitted a list of political heavyweights in the ruling GNP whom Park allegedly lobbied.
Senior prosecutor Hong Man-pyo said they raided the tax offices to check if there were financial documents or other material that the tax agencies did not hand over to the prosecution.
Observers say that then NTS Commissioner Han Sang-ryule directly ordered the audit and that Cho reported the result to him in person. Han allegedly omitted some figures from the list when reporting to President Lee.
Han suddenly left for the U.S. in March ― a suspected attempt to evade the corruption probe. Prosecutors are considering summoning him for questioning.