Kim Young-Jun`s Money Flowed to Politicians and Government Officials

The independent Counsel team of Cha Jung-Il, who is reinvestigating the ‘Lee Young-Ho Gate’ is tracing the flow of the former owner of Daeyang Savings and Finance Co. Kim Young-Jun`s money. The independent counsel team caught a circumstantial evidence that part of Kim’s 15.4 billion won, which he earned 15.4 by stock price manipulation of Samae Indus Corp.`s overseas convertible bonds, was used for his lobbying activities to political and governmental circles, and his escaping.

The independent counsel is trying to restore the data of his computer`s hard disk that was seized from Kim`s house, and started to identify the people who had joined `B fund` that Kim had established in order to subscribe convertible bonds of 3 million dollar.

Kim was requested an arrest warrant by the independent counsel team with the charge that he damaged 3.03 billion won to KEP Electronics Co., one of Lee`s companies, in the process of transferring of management right. However, the independent counsel team is reviewing a statement of protest, which Kim submitted in the court`s contest meeting to review his arrest warrant. In the statement, Kim requested that, "The charge is beyond the independent counsel team`s investigation range. Thus, I ask to stop the execution of the arrest warrant."

If the independent counsel does not accept Kim`s objection, the counsel should submit its statement of opinion and Kim`s statement of protest to Seoul High Court within 24 hours. Then, the court must make its decision within 48 hours.

In his statement, Kim argued, "According to the independent counsel law for Lee Yong-Ho scandal, the investigation range of the independent counsel team is limited to the cases of Lee`s stock price manipulation, embezzlement, and related lobbying activities to political and government circles. The act of breach of trust, which the counsel charged in the arrest warrant, is not related to the counsel`s investigation range."

Although Kim submitted a statement of protest to Seoul High Court, Seoul District Court can issue a warrant of arrest. Thus, if the warrant is issued before the decision of the High Court, his release will be decided after the High Court`s dicision.

The independent counsel called yesterday Shin Seung-Nam, the younger brother of former Public Prosecutor General Shin Seung-Hwan, and pursued supplementary investigation on his meetings with prosecutors since May 3, 2001.

myzodan@donga.com