Prosecution vs. lawmakers: New round of clashes looms large - The Korea Times

Prosecution vs. lawmakers: New round of clashes looms large

By Lee Hyo-sik

With the G20 Seoul Summit winding down Friday, the prosecution is set to resume its stalled probes early next week into a nearly dozen politicians suspected of receiving bribes in an influence-peddling scandal.

Prosecutors are also expected to reopen investigations into the heads of several large business groups who allegedly created slush funds and lobbied influential figures in exchange for business favors.

The Seoul Northern District Prosecutors’ Office plans to summon 11 ruling and opposition party lawmakers as soon as possible, as they are suspected of taking bribes of more than 10 million won each from an association for private security guards in exchange for helping amend a law on their wage and welfare contract terms.

Earlier this month, investigators raided the offices in the legislators’ constituencies and confiscated hard disks and accounting books. Among those whose offices were raided were Rep. Choi Gyu-sik of the opposition Democratic Party and Rep. Lee In-gi of the ruling Grand National Party.

Both governing and opposition parties strongly protested the prosecution’s move, claiming that investigators interfered with the duties of the representatives. The Democratic Party made it official that its lawmakers will not cooperate with prosecutors over what they call a “politically-motivated” probe.

The opposition party has also launched counterattacks urging the prosecution to reinvestigate the illegal surveillance of civilians by the Prime Minister’s Office and the illegal use of a cellular phone by a government official, which was opened under a borrowed name.

But prosecutors have said they will not reopen the closed cases, vowing to continue to probe the alleged bribery scandal implicating lawmakers instead. On Nov. 8, Prosecutor General Kim Joon-gyu said people want investigators to do their job, urging them to prosecute criminals.

A prosecution official said Friday that the summoning of lawmakers suspected of taking money from private security guards could be pushed back to the end of this month, due to strong resistance from opposition parties. “We had planned to question legislators and their confidants early next week after the G20 summit. But the questioning will likely take place later this month under the current circumstances.”

The official said investigators are making an all-out effort to have lawmakers voluntarily appear for questioning. “Even though the probe may take longer than previously expected, we will get to the bottom of the bribery scandal.”

Meanwhile, the prosecution will resume its investigation into businessmen suspected of amassing slush funds and lobbying politicians with the money, as the Nov. 11 and 12 G20 summit comes to an end.

The Seoul Central Prosecutors’ Office is moving to speed up its investigation into the chairman of Sejoong Namo Tour Chun Shin-il, who is known to have been a close friend of President Lee Myung-bak over the past several decades.

Late last month, prosecutors raided the company headquarters, seizing accounting books and computer files.

He has been suspected of having received 4 billion won in cash and gift vouchers from Lee Su-wu, head of Imcheon Industry, a subcontractor of Daewoo Shipbuilding and Marine Industries. In return, Chun allegedly used his influence so the company could tap 100 billion won in bank loans in 2005 and another 20 billion won in 2008.

The prosecution has been asking Chun, who is currently staying in Japan, to return home to face questioning. He flew to Japan in August five days before Imcheon head Lee was questioned by prosecutors and has not returned since, citing business affairs. Additionally, the Supreme Prosecutors’ Office is moving fast to secure additional evidence against jailed C& Group Chairman Lim Byung-seok, who is suspected of creating a secret slush fund to lobby influential figures for business favors.

Investigators plan to indict him on embezzlement charges soon.

Investigators from the Seoul Western District Prosecutors’ Office are posed to summon Taewkang Group Chairman Lee Ho-jin, who is alleged to have unlawfully transferred corporate wealth to the founding family and created secret funds to bribe politicians to land cable television deals, for questioning in the near future.

Hanwha Group Chairman Kim Seung-youn will also likely be summoned soon for questioning on his role in creating an illegal fund, which is believed to amount to tens of billions of won.

Lee Hyo-sik

Lee Hyo-sik is Finance Desk editor at The Korea Times. He manages finance-related stories on macroeconomics, banks, stocks, bonds, crypto etc. He is passionate about covering what's happening in Korea's financial industry and explaining it to both Korean and non-Korean readers. You can reach him at leehs@koreatimes.co.kr. Your insights and feedbacks are always appreciated.

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