Investigation into Kim Hong-up Influence-Peddling Case

The central investigation bureau of the Supreme Prosecutor’s Office on June 25 said that it had launched an investigation into three influence-peddling cases involving Deputy Director of Asia Pacific Peace Foundation Kim Hong-up and his high school friend Kim Sung-hwan. They were accused of exercising influence on high-ranking officials at the prosecution.

“Three investigators from the anti-corruption taskforce team, including prosecutor Kim Kyung-soo and officer Jung In-chang, will join the central bureau of investigation,” said a source from the prosecution. “We will look into allegations and find out if there was any wrongdoing.”

The investigation will focus on three cases involving Lee Jae-kwan, Vice-Chairman of Saehan Group; CEO of “M” housing company Park; and Pyungchang General Construction – they were all charged with fraud or bribery cases but released later upon requests from Kim Sung-hwan.

The prosecution is reviewing the investigation records and plans to summon investigators who were involved in the cases to find out whether there was instructions and pressure from high-ranking officials or whether they directly contacted with Kim Sung-hwan. It will also call Kim Hong-up and Kim Sung-hwan to question how they exercised influence and if they pulled strings in other cases.

Meanwhile, the prosecution issued arrest warrant against Shim Wan-gu, mayor of Ulsan City, on a charge of taking 500 million won in bribery in return for his influence on a business deal. It initially planned to summon Shim again early next month so that he can complete handover of the office to his successor. But it decided to seek warrant earlier than planned as Shim continues to deny his charge.

Sang-Rok Lee myzodan@donga.com