Kim Hong-Gul Confirmed Receiving More than One Billion Won

President Kim Dae-Jung`s third son, Hong-Gul, who appeared before the prosecution on the morning of May 16, has bought sixty-six thousand shares of Tiger Pools International (TPI) at a bargain price of three thousand Won for each share from CEO of Future City Environment Choi Kyu-Sun. He received this price in return for exercising influence to select TPI as the sole sports lottery operator, according to the second special investigative office (chief prosecutor Cha Dong-Min) of the Seoul District Public Prosecutor`s Office.

The Prosecution will issue an arrest warrant against Hong-Gul on charges of influence peddling in violation of the Specified Crimes Aggravated Punishment Act as early as the afternoon of 17th or as late as the 18th of May.

Investigation: According to the prosecution, Hong-Gul has taken over sixty-six thousand TPI shares, totaling 198 million Won with three thousand Won per share, from Choi in April last year and has been holding the stocks since then under the names of the company employees of his brother-in-law Hwang In-Don.

The prosecution is known to confirm through the testimonies of the witnesses and through other means that Choi gave the stocks, asking Hong-Gul in return to influence the selection of TPI as the sports lottery contractor. The prosecution estimates Hong-Gul may have taken more than one billion Won in return for the scheme since the out-of-the market price of the TPI stocks marked more than twenty-thousand Won per share at that time.

It has been exposed that Choi, in behalf of Hong-Gul, deposited the stock purchase money to the account of the CEO of ImpacPromotion Inc., Oh Chang-Soo, who fled overseas.

The prosecution has questioned Hong-Gul on whether he received 1.4 billion Won from the KOSDAQ registered companies aliases D and S construction companies through Choi, and about the circumstances of Hong-Gul`s contacts with ten company presidents including the president of D company, named Mr. Park.

The prosecution relayed, “Hong-Gul answered well to the questions and spoke in a calm voice what he prepared.”

The prosecution summoned all the major related persons in the day including Mr. Choi, Hwang In-Don, the CEO of TPI, Song Jae-Bin (already arrested), and the CEO of D Company Mr. Park. The prosecution cross-examined some of them with Hong-Gul.

The Appearance of Hong-Gul before the prosecution: Hong-Gul, accompanied by his defense lawyer Cho Seok-Hyun, arrived at the building of the Seoul District Public Prosecutor`s Office at ten A.M. in the day. It is the first time in five years that a son of the incumbent president has appeared before the prosecution. The second son of president Kim Young-Sam, Hyun-Cheol, showed up at the prosecution on May 15, 1997.

Hong-Gul said curtly, “I am sorry, I can not face my parents, and I feel sorry to the people.” He was directed toward the prosecutor`s office by taking elevators. Hong-Gul was moved to a special investigative room located in the 11th floor around noon and underwent the ultimate questioning.

On other hand, defense lawyer Cho said Hong-Gul stayed in a relative`s house in Shinchon, Seoul (Daeshin-Dong, Seodaemoon-Gu) for three days after his arrival on the afternoon of May 14.

Soo-Hyung Lee Myoung-Gun Lee sooh@donga.com gun43@donga.com