TPI Lobbied with Stocks to Political and Official Circle

Tiger Pools International (TPI) has allegedly lobbied to the politicians and officials including representatives of both the ruling and opposition parties during the revision of related laws of sports lottery project and the selection process of the operator between 1999 and 2001, according to the second special investigative office (chief prosecutor Cha Dong-Min) of the Seoul District Public Prosecutor`s Office on May 17.

The prosecution has obtained unconfirmed information that considerable number of representatives and their aides in a certain standing committee have owned stocks of TPI or its affiliate companies under the names of others, and the prosecution is probing about the circumstance.

The prosecution also has gotten information on frequent contacts CEO of TPI Song Jae-Bin (already arrested) made at the time with parliament members of both the ruling and opposition camps, high officials of the Ministry of Culture and Tourism (MCT) and the National Sports Promotion Foundation.

The prosecution views there is much possibility that the politicians and officials who have ownership of TPI stocks have directly or indirectly exercised influence on the selection process of the operator.

Especially, the prosecution noticed that TPI scouted some politicians and officials before and after the selection of the lottery operator and the revision of lottery operation related laws and that TPI gave these persons several thousands of stock options (a right to purchase stocks at a later time).

In other hand, the prosecution has a plan to issue an arrest warrant against President Kim Dae-Jung`s third son Hong-Gul on May 18 in charge of receiving kickbacks in return for mediation in violation of the Specified Crimes Aggravated Punishment Act.

The prosecution disclosed that Hong-Gul did not pay a penny for sixty-six thousand shares of TPI stock that were transferred to him from CEO of Future City Environment Choi Kyu-Sun last year as Choi purchased the stocks with the money Song has given to Choi.

The prosecution views the implicated stock was a kickback since the stock was transferred during January and February last year, immediately right after the selection of TPI as the lottery operator. It is known that Hong-Gul owns other stocks in addition to TPI stocks.

The prosecution disclosed that Hong-Gul stated that he met with presidents of private companies including chairman alias Park of a concrete and machinery manufacturing company D and chairman alias Sohn of S Construction Company. However, Hong-gul also stated, `I have received some money from Choi, but I did not know that that was related with influence-peddling,` according to the prosecution.

The prosecution has initially planned to issue an arrest warrant in the afternoon of May 17, but the investigation was delayed allegedly as Hong-Gul denied that he received money in relation to the influence-peddling.

Myoung-Gun Lee Jin-Kyun Kil gun43@donga.com leon@donga.com