Prosecution Secretly Investigated Chief of Staff Park Regarding Bribery Charge

It became known belatedly that the prosecution had launched a probe into a charge that Chief of Staff Park Ji-won received tens of millions won from a venture entrepreneur, who asked Park to pull the strings so that he could acquire a company.

"Chief of Staff Park was suspected of receiving 40 million from Lee Sung-yong, the president of Human Innoteck. After the presidential election, we questioned him at a hotel in Seoul," confirmed the Special Investigational Division of the Suwon District Public Prosecutors` Office. The DA`s Office also said, "Upon interrogation, we concluded that the claim is not sustainable."

The office explained, "We were conducting a probe into an allegation that Lee had got involved in the illegal loan fraud committed by Kim Young-june. Kim was the person who actually owned Ahnyang Deayang Savings and Loan Association. In the process, we got tipped off that Lee gave a 4-million bribe to Park, who was the spokesperson of then President-elect Kim Dae Jung at around January of 1998. The money was allegedly for buying Park`s influence to acquire a company."

The office added, however, "Park verified that Lee gave a 10-million donation in the name of consolation money upon death of Park`s relative. Park said, right upon receipt, he had returned the money, and he had not received 400 million from Lee."

The office further explained that it originally intended to further the investigation if Lee had insisted on the allegation. Later, Lee withdrew his previous allegation, and thus, the office wrapped up the investigation.

In 1998, Lee was indicted without bail for embezzlement of 103.2 billion worth of his company`s fund and bank loans. In April of 2000, he got released on bail due to deterioration of his heart disease. Last June, however, the bail was canceled and he got locked up again.

Lee, a renowned specialist in M&A, allegedly committed various other crimes including embezzlement and fraud while he got freed on bail. Thus, he got indicted on additional charges late last year.

bibulus@donga.com