Lee's son changes statement about 'retirement home scandal': prosecutors

President Lee Myung-bak's only son has retracted an earlier statement about a land deal for his father's now-scrapped retirement home project during the latest round of questioning, a special counsel investigating the case said Friday.

In an April written statement provided to prosecutors, Lee Si-hyung claimed he was unaware of the aborted land deal in which critics argue taxpayer money was used.

"There are some changes from Si-hyung's written statement (provided to prosecutors)," special prosecutor Lee Kwang-bum, who is leading the investigation, told reporters. He refused to disclose details of how the younger Lee's testimony had changed.

The junior Lee was called in because the dubious 2011 deal to purchase a plot of land for President Lee's retirement home and auxiliary facilities for security personnel was made in his name.

The deal was to jointly buy the land in Naegok-dong, on the southern edge of Seoul, with the presidential security service.

The younger Lee is suspected of not having shared the cost evenly, with the security service paying too high a price using taxpayers' money.

In his written statement answering previous prosecutors' questioning, Lee Si-hyung claimed he was unaware of the details of how the cost was divided between him and the presidential security service. He also stated that the land was purchased under his name because he was going to reside there and transfer the owner's name to his father after a certain period of time.

Lee Si-hyung emerged from the counsel's officer about half an hour after midnight after around 14 hours of questioning. When asked if he had answered in the same context as his previous statement, he responded, "There were some errors."

"We believe that what the younger Lee calls an 'error' is an 'error derived from misunderstanding," special prosecutor Lee Kwang-bum said.

"We need to look into many aspects based on (his) statement," the former judge added, refusing to give further details.

Prosecutors in June of this year wrapped up an inquiry into the scandal without filing charges against anyone involved, including the younger Lee, saying all suspicions in the case had been resolved.

The prosecutors at the time said there was no evidence of malpractice in dividing the cost of the plot between the president's son and the presidential office. They also said there was no evidence that the president tried to buy land illegally using his son's name.

If his earlier statements are true, the special counsel may have difficulty charging the young Lee as an accomplice to dereliction of duty charges, because this means the presidential security service singlehandedly handled the transaction of the land.

Opposition parties claim it was a scheme to enable the son to profit at taxpayers' expense as the security service paid an extra amount of between 600 million won ($542,000) and 800 million won.

The younger Lee, however, may be facing charges of breaking reaking real estate laws by using the wrong name in a real estate transaction. The country's real estate laws ban transactions under borrowed names.

Meanwhile, Lee Sang-eun, President Lee's eldest brother, is expected to be summoned sometime early next week for questioning over suspicions he loaned 600 million won to his nephew to buy the land, officials said.

The 79-year-old chairman of automotive seat maker DAS returned home from a controversial overseas trip on Wednesday. He left for China on Oct. 15, one day before the Justice Ministry banned 10 people from leaving the country.

The elder Lee's departure caused a wave of public criticism, as he was suspected of leaving the country to evade questioning, while DAS officials claimed it was for a business trip.

Since the retirement home allegations were first raised by opposition parties, the presidential office has rejected suspicions it was an illicit scheme to help the president's son profit.

President Lee later scrapped the project and decided to move into his existing private house in Nonhyeon-dong in southern Seoul after leaving office next February. (Yonhap)