Hong-Up Kim Receives Bribery for Influence

Central Investigation Bureau of the Supreme Prosecutor’s Office has begun earnest investigation on Kim Sung-hwan, former CEO of Seoul Music Broadcasting Company and high school friend of Hong-Up Kim, who is the second son of President Kim and Deputy Director of Asia Pacific Peace Foundation. Investigation will focus on allegations that Kim Sung-hwan was involved in 3 prosecution investigations through influencing high-ranking officials at the prosecution.

Meanwhile, the prosecution filed for arrest warrant of Kim Hong-up for receiving 2.28 billion Won in bribes in exchange for his influence for businesses. However, the prosecution will prosecute Hong-Up Kim after finding evidence whether Kim Hong-up and Kim Sung-hwan influenced prosecution’s investigation.

Investigation begins on “Prosecution Gate”: The prosecution has secured testimony that Kim Sung-hwan and others have contacted high-ranking officials at the prosecution to impede prosecution’s investigation, and they have succeeded in doing so in some cases.

A source at the prosecution said, “The investigation will focus on whether officials at the prosecution have reduced the scope of investigation on request from Hong-Up Kim and his acquaintances.”

The prosecution is reviewing the investigation records of the cases involving Seoul District Prosecutor’s Office in the indictment without arrest against Lee Jae-kwan, Vice-Chairman of Saehan Group, in May, Suwon District Prosecutor’s Office in the indictment against Park, CEO of “M” housing company, without arrest in July 1998 as well as a closed investigation on Pyungchang General Construction by the Ulsan District Prosecutor’s Office in May 2001.

The prosecution seeks to secure physical evidence such as phone call records between Kim Hong-up and high-ranking officials at the prosecution and considers calling those responsible for the investigations to question whether there have been any requests from Kim Hong-up and his acquaintances.

In the arrest warrant against Kim Hong-up, the prosecution stated, “There have been reports made to him by Kim Sung-hwan and Lee Gu-sung, CEO of “P” promotion for the case involving Lee Jae-kwan. He asked Kim Sung-hwan whether influencing the investigation is possible and received money.”

Arrest warrant for Kim Hong-up: The prosecution filed for arrest warrant on June 21 against Hong-Up Kim for bribery and violation of attorney’s act for receiving 2.28 billion Won in bribes.

The prosecution uncovered that Hong-Up Kim received some 1 billion Won with Kim Sung-hwan from Chun for expediting court mediation for the bankrupt “S” construction company. In addition, the prosecution found that Kim received 140 million Won by himself for absolution of debt for the company.

The prosecution also charged Kim Hong-up with conspiracy bribery as it was discovered that Kim conspired with Kim Sung-hwan and others and received 750 million Won in August 2001 from Lee Jae-kwan for influencing investigation by the prosecution and the Financial Supervisory Commission.

Hong-Up Kim has allegedly received 100 million Won from Yoo, CEO of “S” company for nomination for “Model Tax Payer Award” by the National Tax Services in February. At the same time Kim has allegedly received 200 million Won from Oh Si-duk, CEO of National Housing Corporation, for influencing Chongwadae investigation that Oh has formed 800 million Won in slush funds in the process of restructuring state-owned companies.

The prosecution included 170 million Won Kim Sung-hwan received from “M” restaurant company for influencing tax audit and 100 million Won received from Kim, Managing Director of “P” construction company to allow the company to receive a letter of credit guarantee, as the prosecution found Hong-Up Kim’s involvement in the cases.

Meanwhile, Kim Hong-up submitted a waiver for hearing on the arrest warrant to the court through his attorney Yoo Jae-in.

viyonz@donga.com