[Editorial] President’s Nephew-in-Law, What’s the Big Money?

Special prosecution (SP) team is continuously disclosing charges against the President’s nephew-in-law, Lee Hyung-Taek, who used to work in the public fund management agency, for requesting tax favors in relation to Lee Yong-Ho’s business. While the government cried for financial reform as one of its 4 reforms, the President’s nephew-in-law went around asking the chief presidential secretary of the economy and bank managers for personal favors. Whose reforming what?

Lee worked at the Korea Deposit Insurance Corporation (KDIC) as an executive director, which virtually led the investigations on public funds in insolvent financial institutions and recovering the money. It was natural for the former Donghwa Bank’s 1st division manager, the President’s nephew-in-law, to rise as an economic power-figure as he sat in second position at the public fund management agency.

SP is to investigate whether Lee Yong-Ho’s consortium overran its competitors, and took over Cho Hung Capital, a subsidiary company of Cho Hung Bank. Lee Hyung-Taek’s role in the sale process of Cho Hung Capital must be clarified, because KDIC was the major stockholder in Cho Hung Bank. Also, suspicion is growing as it was found that transactions of billions of won took place under Lee’s suspected false-name account.

As SP proceeds with its investigation, charges against Lee Hyung-Taek are growing in number. Lee’s lawyers are arguing that SP is going beyond their jurisdiction in the `Lee Yong-Ho scandal`. The court will make the decision, but in the case that SP has exceeded its jurisdiction, the prosecution can take them over and investigate the case themselves.

The SP jurisdiction in Lee Yong-Ho scandal was set before suspicions around finances became so complicated. If the set SP jurisdiction creates obstacles in the Lee Yong-Ho investigation, it should be revised without hesitation.