Return of Fraudster - The Korea Times

Prosecution Must Minimize Political Fallout on Election

The presidential race has taken a new twist with the arrival of a high-profile financial fraudster. Kim Kyung-joon, a former business partner of leading opposition presidential candidate Lee Myung-bak, returned from the United States on Friday to face questioning into his alleged manipulation of stock prices. Lee and his Grand National Party (GNP) are going all-out to counter allegations that he was deeply involved in the scheme.

Lee's aides and GNP members have strongly denied the allegations. They claim earlier probes by the Financial Supervisory Service and the prosecution showed that he was not implicated in Kim's fraudulent act. They call for a fair investigation into the Kim case, while urging the governing camp not to exploit the case to block Lee's presidential bid.

Rep. Lee Bang-ho, the GNP secretary-general, has threatened to stage a mass protest if the prosecution conducts an unfair probe to cause Lee Myung-bak trouble ahead of the Dec. 19 election. However, the pro-government United New Democratic Party (UNDP) and its presidential candidate Chung Dong-young are stepping up their struggle against Lee and the GNP. They call on the prosecution to thoroughly investigate the case so as to confirm allegations that Lee colluded with Kim in profiteering from share price manipulation.

Kim is accused of embezzlement and money laundering. He is suspected of manipulating the stock prices of his now-defunct investment firm, BBK, in 2000 and misappropriating $42 million earned from the scam. He set up a financial firm, LKe Bank, in partnership with Lee who invested $3.2 million. Kim fled to the U.S. in 2001 to avoid criminal charges. Lee's opponents have claimed that he was behind the manipulation citing his partnership with Kim. But Lee has dismissed the claims as groundless.

Kim's extradition might serve as a political time bomb for Lee, who leads the race with popular support of around 40 percent. Meanwhile, it could be a golden chance for Chung to turn the tables at a time when his support is estimated at around 10 percent. Thus, the showdown between the two rivals over the Kim case might dictate the course of the campaign. What's worrisome is that the two sides might be thrown into a dog-eat-dog partisan struggle against each other.

The rival camps should keep in mind that people are already fed up with such a dirty political game. The public was disappointed at the GNP's August primary that was tainted by mudslinging between Lee and his archrival Park Geun-hye, the former party chairwoman and daughter of late President Park Chung-hee. Much to voters' dismay, the governing camp joined the GNP infighting in an attempt to damage Lee's reputation. The prosecution also came under attack for disclosing controversial results of its investigation into suspicious about how Lee amassed his wealth.

The prosecution must maintain its political neutrality to conduct a fair and thorough investigation into the Kim case in order to ensure the election is not swayed. It has already been mired in politically-biased probes during previous presidential campaigns. One such case targeted opposition candidate Kim Dae-jung in 1997 over allegations about illegal political funds. Another involved allegations against GNP candidate Lee Hoi-chang in 2002 over his son's military service exemption. Both allegations proved groundless.

We urge the prosecution to avoid the recurrence of such cases this time because South Korea is at a critical juncture to choose a new president to lead the nation for the next five years. Chung and his party, the UNDP, will have to refrain from engaging in a smear campaign against Lee Myung-bak and politically taking advantage of the Kim case. Lee and the GNP should make every effort to clear suspicions about his reported involvement in fraud. Only after that can the contending candidates regain public confidence and play fair in the presidential race. Only 32 days remain before the election. All the candidates must engage in fair competition by presenting detailed policy proposals to bring hope and a new vision to the nation.