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Prohibiting 10 Financial Directors of Companies from Departing Korea

Prohibiting 10 Financial Directors of Companies from Departing Korea

Posted November. 04, 2003 22:44,   


The Central Investigation Department of Federal Prosecutor’s Office (Ahn Dae-hee, the head prosecutor), investigating the case of the illegal funds for the presidential election, stated on November 4 that they ordered Kim Hong-seop (the present head of general affairs in Open Uri Party), who was a financial director for the Democratic Party during last year’s presidential election, and Park Jong-sik, the director of practical affairs for Central Support Committee in Grand National Party, to appear before the prosecution.

The prosecution is verifying whether Samsung, LG, Hyundai Auto, and Lotte (also including SK) opened slush fund accounts for the presidential election.

If the opening of accounts turns out to be true, the prosecution will ask the court to issue a seizure and search warrant for these companies’ offices in order to trace those accounts and to find other information.

For this, the prosecution decided to submit data of presidential election funds accounts and to start careful examinations.

The prosecution has already prohibited the 10 or more financial directors of the conglomerates, including the head of restructuring department in the principal companies, from departing Korea or is considering doing so.

Regarding Kong Ho-sik and Bong Jong-gun from the financial department in GNP, who had not accepted the summoning, the prosecution informed them to appear on November 5. In case that they do not accept it again, the prosecution may arrest them after securing an arrest warrant.

In addition, the prosecution decided to summon Lee Sang-su, a congressman from the Open Uri Party, and Kim Yeong-il from Grand National Party this week and is currently considering the date of summoning.

The prosecution also decided to investigate if they had received illegal money from the other big companies while they took SK slush funds after the two congressmen and financial directors appear. The prosecution put four prosecutors of the financial investigating department in Seoul district public prosecutor’s office, including the head of Wonju district public prosecutor’s office Lee In-kyu, who investigated the case of “SK illegal internal transaction” this February, into an investigation team that day and made them take full charge of investigating companies over such issues as analyzing accounts’ wrong-doing.

Wi-Yong Jung Jin-Kyun Kil viyonz@donga.com leon@donga.com