Lee Hyung-Taek Involved in Stock Market Manipulation

Special Prosecutor Cha Jeong-Il is planning to summon former managing director Lee Hyung-Taek, the nephew of the first lady who is suspected to have led the excavation of the treasure ship on the 24th.

The Special Prosecution (SP) team will investigate the circumstances surrounding Mr. Lee making a contract to receive 15 percent of the profit and whether he lobbied through connected persons in the National Intelligence Service and the military.

Considering that Mr. Lee Yong-Ho made 15.4 billion won in marginal profits by the surge of SamaeIndus stock prices two months after Mr. Lee Hyung-Taek informed Mr. Lee about the treasure ship excavation project in November 2000, SP will also grill Mr. Lee on whether he was involved in market manipulation and received bribes for his exercise of influence on the Financial Supervisory Commission.

SP thoroughly investigated the circumstances surrounding the contract on November 2nd 2000, by summoning the contractors with Lee Hyung-Taek, including Oh Sae-Chun, Choi Do-Hyung, and Yang Soon-Mo.

SP specifically grilled them about the reason why Lee Hyung-Taek arranged a meeting with Lee Yong-Ho for Mr. Oh and whether Lee Hyung-Taek promised to lobby through the National Intelligence Service, Financial Supervisory Service, and other financial organizations on condition that he shall receive 15 percent of the profit.

The SP team will indict Mr. Lee if his lobbyist activities for the treasure ship project are proved true. However, Mr. Lee Hyung-Taek left his home with his wife on 21st before the suspicion was reported and has not returned home until yesterday night.

SP is also analyzing the recovered data from two hard diskettes confiscated from Kim Young-Joon`s house, the former owner of Daeyang Trust and Financing Co. Ltd.

On receiving all the response letters from the 7 former and incumbent prosecutors who had met with Mr. Shin Seung-Hwan since May last year, SP decided to summon 3-4 prosecutors who are highly suspected of leaking investigation information.

SP is also planning to investigate the investigation team and the lawyers involved in the first investigation of Lee Yong-Ho Gate in May 2000 on the suspicions of solicitation and protection for the suspects.

myzodan@donga.com