To Track Holder of Convertible Bond Amounting to $3 Million

In the midst of investigating the G&G chairperson Lee Yong-Ho (43)`s financial scandal and the suspicion of politically related lobby activities, the Central Investigation Department of the Supreme Prosecutors` Office (head prosecutor Yoo Chang-Jong) is tracking the real holder of the overseas convertible bond fund and the flow of fund, which was made by Lee Yong Ho for the politically related lobby activities.

The Prosecution found out that the real owners of the Samae Industrial Co. Ltd.`s overseas convertible bond exist and investigate the list of them. The Samae Industrial`s overseas convertible bond has been managed under the name of Kim (a person wanted by police), who is the real owner of `D` financial bank.

A prosecutor said that ``the convertible bond, which was undertaken under the name of Kim, has been managed as an account under the name of KGI Securities` `Business Plus`, Since this account looks suspicious, we are thoroughly investigating.``

However, the Prosecution said that some of the press report, which announced that the bribery of high-ranking prosecutors and politicians was revealed, and the bribery note or memorandum was found, was not true at all as of now.

A prosecutor said, ``We have not heard any word related to the bribery memorandum. We will ask a legal responsibility for the press firm, which groundlessly reported that the prosecution disregarded the bribery memorandum even though it seized it.``

The Prosecution investigated Shin Seung-Hwan (49), brother of the Prosecutor General Shin Seung-Nam, on the amount of money he received from Lee and the background of receiving money, and sent him back home yesterday. In relation to the background of receiving money, the Prosecution announced that ``when Lee offered a position of president to Shin Seung-Hwan, Shin said he had a poor credit. Then, Lee gave Shin money saying that he would pay for Shin`s debt.``

Since Lee give Shin 50 million won on May 22nd, a day after the Prosecutor General Shin was informally decided as the Prosecutor General, the Prosecution is suspecting that it is highly possible that Lee might have asked for a favor while giving money to Shin.

The Prosecution indicted Lee for embezzlement, misfeasance in office, and the violation of the Securities Exchange Law. The Prosecution announced that the amount of Lee`s embezzlement and misfeasance was 68 billion won, and the amount of the violation of the Securities Exchange Law was 25 billion won.

Lee Soo-Hyung sooh@donga.com