Ex-president denies bribery, embezzlement allegations

By Kang Seung-woo

Former President Lee Myung-bak denied allegations of receiving bribes from businesses and creating a slush fund through an auto parts maker, estimated to add up to tens of billions of won, Thursday.

Lee did this through his lawyers at a pre-trial hearing that was not mandatory for him to attend.

The 76-year-old, who served as president from 2008 to 2013, was arrested in March on charges of taking a total of 11 billion won ($10 million) in bribes from the state-run spy agency and various businesses between 2007 and 2012

In addition, he is suspected of embezzling 35 billion won from the auto parts firm DAS, which he is said to secretly own, between 1994 and 2006.

“Lee denies all allegations linked to DAS, including siphoning off its corporate money and creating a slush fund,” Kang Hoon, one of Lee's lawyers, told the judges.

Samsung Electronics is alleged to have paid 6.77 billion won in retainer fees for DAS in 2009. DAS had filed a lawsuit to recoup its investment in a U.S. financial firm run by Lee's estranged former business partner.

“Lee did not receive any reports regarding Samsung's payment,” Kang said.

Also, the former head of state faces 16 charges, including abuse of power, tax evasion, violation of the Election Law, embezzlement and bribery.

However, the lawyer said Lee refuted all these allegations.

Lee is suspected of taking 700 million won from off-book accounts of the National Intelligence Service via his aides, and the prosecution claimed he received 2.26 billion from Lee Pal-seung, a former chief of Woori Financial Group, in return for getting him the job at the then-state-run lender.

In addition, Lee is said to have received kickbacks worth hundreds of millions of won from a construction firm, a former lawmaker and a Buddhist leader.

On April 10, prosecutors requested a freeze of Lee's assets until the court reaches a verdict.

Lee has become the nation's fourth former president to face a criminal trial for corruption following his successor Park Geun-hye's indictment in 2017.

Since the prosecution's investigation was launched in January, Lee and his aides have denounced it as “political revenge” by the Moon Jae-in administration for the death of former President Roh Moo-hyun, who committed suicide after becoming embroiled in a corruption investigation under the Lee government.