Shin Seung-Hwan “Met Prosecutors“

The controversy surrounding the request for the arrest warrant for Shin Seung-Hwan (49), a younger brother of the Public Prosecutor General, was held at the Seoul District Court, yesterday morning. The Independent Counsel Team (ICT) headed by Cha Jung-Il, who is reinvestigating the `Lee Yong-Ho Gate` requested a warrant for Shin Seung-Hwan`s arrest.

Shin is accused of receiving 50 million won from Lee Yong-Ho, Chairman of G & G Group, between last May and June, and of lobbying officials at the Korea Asset Management Corporation (KAMCO) and the Financial Supervisory Service (FSS).

After receiving money from Lee, Shin contacted several prosecutors, including prosecutor L at the Seoul District Prosecutors Office, prosecutor K at a branch office of the Seoul District Prosecutors Office, and prosecutor J at a branch office of the Suwon District Prosecutors Office. While these facts were not listed in the charges against Shin, the ICT included them as grounds for the arrest.

If the ICT finds evidence that the prosecutors leaked investigation information in response to Shin`s request, the prosecutors will be prosecuted under criminal law, and the Public Prosecutors Office itself will fall into a major scandal.

In the contentious process of requesting the arrest warrant, Shin argued, "I collected information on low-price purchasing of bad debt and on subscribing for shares through the meetings with the officials of financial groups due to my position at `G & G Restructuring` one of Lee`s company. But, I never lobbied illegally."

He also said, "Although I have met several prosecutors whom I was acquainted with, I never asked them to stop the investigation on Lee."

According to the ICT, after he became the President of `G & G Restructuring,` in May 2001, Shin received 50 million won from Lee, and then asked Vice President Lee of J Bank, one of Ssangyong Fire & Marine Insurance`s (SFMI) main bank, to buy SFMI`s stock at a 20-30 percent cheaper price than in the open market during June and July 2001.

Shin is also accused of making a call to Mr. Shin, an official of the KAMCO, and requesting to buy S company`s bad debt, which the KAMCO held, at a cheap price in July 2001.

The ICT also announced that Shin lobbied Director Park of the FSS to relieve the FSS`s investigation on Lee, which was conducted in relation to Lee`s company`s subscribing for shares of SFMI.

Jung-Eun Lee lightee@donga.com · myzodan@donga.com