By Na Jeong-ju
The rift inside the ruling camp is showing signs of deepening further as the leadership of the Grand National Party (GNP) has expressed opposition to key policy proposals by the administration and Cheong Wa Dae.
GNP sources said Tuesday that the party will ask the government to scrap the idea of creating a “megabank,” which has been backed by economic advisors to President Lee Myung-bak, including former Finance Minister Kang Man-soo.
Kang, currently chairman of the state-run Korea Development Bank, has expressed intention to buy a controlling stake in Woori Financial Group and create a supersized financial institution.
Analysts say the discord over the sale of Woori is the latest indication of an escalating power game between Cheong Wa Dae and the new GNP leadership, formed in the wake of a humiliating defeat in April’s by-elections.
The turmoil deepened Monday when the presidential office opposed the National Assembly’s move to abolish a key prosecution unit that is responsible for investigating corruption cases involving politicians and senior government officials.
Earlier this year, the GNP and the main opposition Democratic Party (DP) agreed in principle to scrap the Central Investigation Department (CID) at the Supreme Prosecutors’ Office and create an alternative, independent agency to prevent possible abuses of the CID by the presidential office for political purposes.
The prosecution has claimed that the Assembly’s move was in response to its ongoing corruption investigations of lawmakers. According to the National Assembly, more than 20 incumbent and former lawmakers are now under investigation or awaiting trial on bribery and other corruption charges.
On the other hand, some lawmakers say Cheong Wa Dae’s opposition to the scrapping of the CID represents its “evil” intention of using the prosecution to maintain its power.
“Political parties have been discussing the prosecution reform for the past 15 months. Cheong Wa Dae didn’t even say anything when parties reached an agreement months ago to abolish the CID,” said Rep. Joo Sung-young, who has been leading a GNP team on judicial reform.
“We don’t understand why it is suddenly trying to put the brakes on the plan.”
DP Chairman Rep. Sohn Hak-kyu raised suspicions that the presidential office and the prosecution have reached a “big deal” behind the scenes, under which the prosecution will be allowed to keep the investigation unit.
“In return, the prosecution might have decided to take it easy on presidential aides involved in the savings bank corruption scandal,” Sohn alleged.
What complicate the issue are uneasy relations between Cheong Wa Dae and the GNP leadership.
“We need to take a more cautious approach toward the abolishment of the CID,” presidential spokeswoman Kim Hee-jung told reporters.
“We need the CID to investigate powerful politicians. If it is abolished, the prosecution’s efforts to fight corruption could be seriously undermined.”
Rep. Hwang Woo-yea, the governing party’s floor leader and acting chairman, expressed discontent over the reaction from the presidential office, saying, “Let Cheong Wa Dae do its job. We will do ours.”
Hwang and other newly-elected GNP leaders have proposed some reform measures, such as college tuition cuts and the withdrawal of a plan to reduce corporate and income taxes, in order to regain public trust in the ruling camp.
They also made it clear that there won’t be unconditional support for the administration’s plan to secure early parliamentary ratification of the free trade agreement with the United States.
Presidential aides have expressed concerns that such discord within the ruling party could dampen the government’s efforts to move ongoing state projects forward and weaken Lee’s grip on state affairs.