Loan scandal witnesses differ widely

National Assemblymen on Monday questioned six witnesses during the National Policy Committee audit of the Financial Supervisory Service in connection with an alleged loan scandal involving Dongbang Mutual Savings and Finance Co. But conflicting testimonies by key witnesses made objective fact-finding difficult.

Opposition lawmakers from the Grand National Party focused their queries on the possible intervention of some ruling party members in the affair.

Chung Hyun-Joon, president of Korea Digital Line, was asked by Rep. Suh Sang-Seob to reveal the "influential government party figures mentioned by Dongbang Mutual Savings and Finance Co. vice chairman Lee Kyong-Ja", citing the names of Reps. Kwon Roh-Gap and Kim Hong-Il of the Democratic Party.

Rep. Um Ho-Seong demanded that Chung give the names of those who sent wreaths to celebrate the opening of Shinyang Factoring office. Rep. Lee Seong-Heon raised misgivings about a Lee, president of S Securities firm, who Lee met when the two attended a graduate school together. The business executive is a relative of Kim Ok-Doo, secretary general of the Democratic Party, Rep. Lee claimed.

In contrast, Democratic assemblymen concentrated on brushing aside the allegations of government party members' involvement in the scandal as groundless rumors. When Rep. Kim Min-Seok questioned Chung whether his private funds solicited subscription by Mrs. K, K, K, and P. the latter said no. When questioned by Kim if she had said some ruling party bigwigs were backing her up, Lee denied the accusation.

Rep. Ahn Dae-Ryun, a United Liberal Democrat, demanded the witnesses that they must have spread these "unfounded rumors for purposes of influence peddling to draw more money" to the shady fund.

Chung argued that Lee used to say she was familiar with government party figures and officials of the prosecution and the Financial Supervisory Service, which was flatly decried as a lie by Lee.

"Even though I have been exhausted by the night-long prosecution investigation, Chung's lie rather energizes me," she added.

Insisting on his innocence, Chung tried hard to vindicate himself from suspicions, asking to be given the floor longer for his elaboration. He said that he is not a coward and has nothing to lose, but he avoided giving specific names of political and bureaucratic figures allegedly entered on his fund list, only saying that he told the prosecutors about them.

When pressed for how the relations between the two who had been so close to each other went wrong, the pair were at a loss for an answer. "I myself wonder what went wrong!" he said.

Lee Chol-Hi klimt@donga.com