PM pressed hard over bank scandal

By Kim Se-jeong

Lawmakers Thursday grilled Prime Minister Kim Hwang-sik at a parliamentary interpellation session, asking the former top auditor to clarify remarks he made in regards to the snowballing scandal involving the Busan Mutual Savings Bank.

“What had begun as corruption in a small bank has blown into a major scandal with senior auditors involved. You have said ‘At countless times, there was pressure in auditing banks.’ It’s time for you to reveal what you were referring to when you said ‘countless times,’” said Rep. Kim Seong-jo of the ruling Grand National Party (GNP).

Hwang made the now-controversial remark in a luncheon with journalists after news of the scandal broke.

In an obvious attempt to keep his distance, he said “What I was referring to were unidentified people who asked that the Board of Audit and Inspection not audit some banks. I wasn’t referring to any specific organization or lawmaker.”

Rep. Kim Yoo-jung of the main opposition Democratic Party (DP) wasn’t content with the prime minister’s response. “You certainly can’t be free from this scandal. You must be held accountable for this affair and step down,” Kim said.

Rep. Shin Jin-ho of the GNP said he could prove Kim wrong, raising new allegations involving the late former President Roh Moo-hyun and his wife and Kim Jin-pyo, the floor leader of the Democratic Party (DP).

The scandal began with the suspension of the operation of the Busan Mutual Savings Bank in February.

Later, it was found that a handful of depositors had been tipped off about the suspension, and withdrew their money, whereas the majority of ordinary customers’ savings were left in jeopardy.

The public outcry forced the government to launch a probe, which unveiled a bribery case involving a former BAI auditor Eun Jin-soo and other high-ranking government officials. The board was supposed to monitor the financial status of the savings banks.

The scandal is developing rapidly with new revelations on those involved.

The government is obviously without a solution and opposition lawmakers are seizing on the opportunity to target the ruling camp.

Although details are still not fully known, both conservative and liberal lawmakers have agreed on initiating two investigations, one by the National Assembly and the other by a special prosecutor.

Meanwhile, during the same session, Unification Minister Hyun In-taek reconfirmed the North’s statement that officials from the two Koreas met in May.

“But the main reason for the meeting was to obtain the North’s admission on two previous attacks on the South, an apology and a promise for non-recurrence,” and not to arrange an inter-Korean summit, he said.

On Wednesday, the Stalinist North acted out of the diplomatic norm to reveal that the South had contacted them on May 9 in Beijing to “beg” for three inter-Korean summits. The North’s official Korean Central News Agency even said that an “envelope of cash” was offered. Hyun denied that Seoul offered any cash.