Parties` Offense and Defense over Allegations of Illegal Campaign Funding

Remarks by ruling Millennium Democratic Party (MDP) Chairman Chyung Dai-chul that his party raised 20 billion won in presidential campaign funds from businesses are expected to create a stir, as the opposition Grand National Party (GNP) is demanding a presidential explanation and a thorough probe.

The Presidential Office of Cheong Wa Dae and the MDP contend that there was nothing illegal about their campaign fund-raising, while Mr. Chyung says that the money he received in political contributions was eventually used for the election campaign of then-candidate Roh Moo-hyun, hinting at another revelation concerning the MDP’s fund-raising activities.

According to GNP spokesman Park Jin, these latest assertions by Chyung contradict President Roh’s insistence that donations to his campaign came mainly from individual contributors. Park has called on the president to disclose the actual amount of funds raised from businesses by illegal means and the extent to which the MDP underreported total campaign contributions.

Park said that the National Election Commission and the prosecution should launch an investigation to get to the bottom of the case.

In closely related matter, the GNP also demanded a presidential explanation of the "Goodmorning City" bribery case, and plans to establish its own fact-finding taskforce to look into the issue.

In response, presidential spokesman Yoon Tai-young said, "MDP Chairman Chyung Dai-chul seems to have been mistaken about campaign funds. Other MDP members, including Secretary-general Lee Sang-soo, know the truth, but Cheong Wa Dae has little knowledge. Therefore, the president has no plan to explain his own position on the case."

Meanwhile, Mr. Chyung has rejected demands for his resignation and the prosecution`s summons for questioning about allegations that he took money from the Goodmorning City shopping mall project.

Given the load of issues the party currently has to deal with, said MDP Rep. Lee Nak-yeon, it is difficult for Chyung to undergo the prosecution`s questioning at this time.

"The problem is that most of the money Mr. Chyung took during the campaign could have been used for President Roh Moo-hyun," a close aide to Mr. Chyung said. "Mr. Chyung is thinking that he is now being used as a scapegoat, though he helped Mr. Roh a lot and there is a possibility that he could reveal other irregularities regarding campaign funds."

The MDP chairman is scheduled to explain his position on the case at a meeting of top party leaders Monday.

Seung-Mo Yoon ysmo@donga.com jyw11@donga.com