Political War of Partisanship Getting Hotter over Announcement of Lee Ik-chi

Politicians are waging a bitter war of partisanship over the "Tokyo announcement" by Lee Ik-chi, a former chairman of Hyundai Securities, Inc. Lee announced in Tokyo that presidential candidate Rep. Chong Mong-june of People`s Unity 21, had involved himself in the manipulation of Hyundai Electronics` stock prices in 1998.

Lee also alleged on Oct. 28th, "The stock price manipulation is not the only one Rep. Chong got involved in. Thereafter, he played a significant role in many cases. He has to tell us what role he played regarding the lawsuit for regaining the payment Hyundai Heavy Equipment made for Hyundai Electronics, and the terrorist act that occurred during the strike by Hyundai Heavy Equipment`s workers."

On the contrary, a former employee of Hyundai testified that the stock price manipulation was ordered by late Hyundai chairman, Chong Joo-young.

Just before he left Japan on Oct. 28th, he alleged, in a phone interview with The Dong A, "Hyundai Heavy Equipment paid for the loans Hyundai Electronics borrowed from foreign banks. But it illegally wire-transferred $200 million without a government permission. I was just working as a liaison between the two companies. But, later, Hyundai Heavy Equipment suited me, alleging I have to pay for the payment it made for its affiliate."

He also contended, with regard to the manipulation scandal, "At that time, the Financial Supervisory Service was investigating Hyundai Heavy Equipment and its CEO and owner. The Hyundai Equipment lent the money for buying the shares. All of sudden, the service began to single me out as one of the parties to that scandal."

A former employee of Hyundai told a The Dong A reporter, "In those days, Hyundai was preparing for raising its capital. But the stock of it began to nose-dive. Thus, late chairman Chong ordered to boost up the price. And Hyundai Heavy Equipment paid for most of the money needed for that purpose. It was best among Hyundai affiliates in terms of cash flow."

He also argued, “It was a widespread practice of that time that a group boosted the stock price of an affiliate if the affiliate`s stock price went down."

A rumor has it that some of the securities firms and fund managers got involved in the manipulation, and made profits therefrom.

In response, Rep. Chong held a press conference on Oct. 28th and said, "To get to the bottom of this allegation, it is necessary to conduct the National Investigation, hearings and prosecution." He then proposed initiation of the National Investigation and appointment of a special prosecutor.

He also asserted, "I will not run for the presidency if what Lee has alleged turns out true. On the other hand, presidential candidate Lee Hui-chang of Grand National Party should resign if it turns out that candidate Lee egged Lee on in making these stories up."