Another Bribe Scandal Comes to Light

The JU Group, which is under investigation by the prosecution on charges of illegal pyramid selling and stock price manipulation, created an illegal slush fund and spent it on lobbying, according to the National Intelligence Service (NIS) internal report presented to the prosecution.

According to the report, titled, “The JU Group’s slush fund situation,” the group’s slush fund set up by consultants, head accountant, and directors amounted to 200 billion won, out of which 10 billion won paid as bribes to prosecutors, police, and politicians. The group also smuggled six billion and four billion won to Beijing and the Philippines, respectively.

The source of the information was not confirmed, but the NIS was reportedly gave the report to the Supreme Prosecutors’ Office in last December for reference.

Grand National Party lawmaker Kwon Young-se who acquired the report asked who prepared it to Director of the NIS Kim Seung-gyu on April 27 at the National Assembly’s Intelligence Committee. Kim sent an NIS officer to Kwon on May 2 and admitted it was the NIS.

The report says the JU group gave funds to politicians generously whenever it was asked as a form of insurance, and sent valuables to prosecutors and the police to avoid investigation by the Fair Trade Commission.

“It is true we received an NIS report, and it has quite detailed information. But it is still no more than an intelligence report,” said a source from the prosecution investigating the group.

Chin-Ku Lee sys1201@donga.com wing@donga.com