Roh’s daughter faces questioning

Prosecution probing Korean-American lawyer over apartment deal

By Kim Rahn

Prosecutors are likely to question the daughter of the late former President Roh Moo-hyun over a dubious apartment deal made in 2009, after testimony was recently obtained about her alleged involvement in the deal.

The probe, however, has drawn a backlash from opposition parties that claim the investigation is politically motivated to deal a blow against Roh’s former aides ahead of the December presidential election.

Prosecutors at the Supreme Prosecutors’ Office said Friday that they quizzed a Korean-American lawyer who sold a New Jersey apartment called “Hudson Club” to Roh’s daughter, Jeong-yeon, for three days from Tuesday. During the questioning, the lawyer, Gyeong Yeon-hee, testified that she received 1.3 billion won from Jeong-yeon in 2009 via two brokers after the money was illegally converted into U.S. dollars.

The prosecution plans to charge Gyeong with violating the Foreign Exchange Law during the deal next week, saying that she received the money apparently knowing that it was illegally converted into U.S. dollars through two brokers. It may also question Jeong-yeon afterward. “For an illegal foreign exchange case, both parties of the deal are subject to punishment, so an investigation into Jeong-yeon is inevitable,” a prosecutor said.

But prosecutors haven’t decided when and how to question her, especially because of the political aftermath the probe may bring about. They are considering quizzing her by letter or by visiting her home. Jeong-yeon had a baby two months ago.

In 2009 when the prosecution was investigating the bribery scandal surrounding Busan-based businessman Park Yeon-cha and the late president, it was alleged Roh’s daughter bought the apartment with money provided by Park. After Roh committed suicide, the probe was closed.

But the case was reopened in February after one of the brokers, Lee, claimed he received the money in cash in seven boxes from an unidentified person and delivered it to another middleman, surnamed Eun, who then changed it into $1 million through illegal means and transferred it to Gyeong.

Prosecutors questioned Eun and Lee over the allegation in March. Lee said Gyeong called Jeong-yeon about the payment of the last installment for the apartment sale, so the latter prepared the money.

They also interrogated Park, who is behind bars, about whether he offered the money to Jeong-yeon, which Park denied. They are also trying to find out who the unidentified person who delivered the money was.

The prosecution says the probe is targeting the illegal foreign exchange, denying suspicions that the investigation will be expanded to include the late president’s alleged slush fund. Inquiries into this closed upon his death.

But suspicions linger, because if Jeong-yeon is charged with involvement in the illegal foreign exchange, she will be questioned about how she prepared the money. If the money is believed to have come from Park despite his denial, the prosecution will have to re-open inquiries into allegations that the late president had a slush fund.

Opposition parties claim that the current investigation, re-launched three years after an initial one, is politically motivated and aimed to damage Moon Jae-in, presidential contender from the Democratic United Party who was one of Roh’s closest aides.

Last month, prosecutors also questioned former Police Commissioner General Cho Hyun-oh over his remarks about Roh’s slush fund. In 2010 at a meeting with police officials, Cho said the former president killed himself a day after police found a large sum of money held in a bank account under another name. Roh’s family sued him for libel.