“Billions of Funds Laundering,” Sun and Moon Chairman Faces Departure Ban

The Central Investigation Department of the Supreme Public Prosecutors’ Office announced yesterday that it issued departure bans to Moon Byung-wook, 51, Chairman of Sun and Moon Group (SMG) and his two financial officials after confirming Moon -- who went to the same high school as President Roh Moo-hyun -- laundered billions of funds.

As the Korea Financial Intelligence Unit (FIU) of Ministry of Finance and Economy requested investigation on this company, the prosecution plans to seek a search warrant targeting the SMG and to trace bank accounts of Moon and his company.

Sun and Moon Group is suspected of being involved in illegal fund-raising for President Roh last year when the presidential election took place. Currently, the opposition party is investigating Moon’s case, as well as a case involving Roh’s aides.

The prosecution plans to summon a number of conglomerate executives and related officers starting from this week for the investigation of illicit presidential campaign financing.

Of the Big-Five conglomerates, the prosecutor plans to summon Lee Hak-soo – the chief restructuring official of Samsung, LG Chairman Koo Bon-moo, Kim Dong-jin, Hyundai’s President and Chief Executive, and Kim Byung-il -- Lotte’s headquarter chief for Management Control for the investigation. The Chairmen of Hanjin, Kumho, Hanwha, Doosan, Dongbu and Hyosung are also to be summoned this week or next week.

The prosecution, now tracing bank accounts of these companies, said that the investigation outcomes on illegal funds -- which were handed to the Millennium Democratic Party (MDP) and Grand National Party (GNP) -- confirmed that almost all companies collected funds by the owners’ direct orders.

The prosecution said that companies must face investigation if they provided funding through slush funds or even illegal funds.

The prosecution plans to summon Seon Bong-sul -- Roh’s old friend and the former president of Jangsoocheon -- for interrogation after confirming that Seon had received numerous funding which seemed unrelated to Kang Keum-won – the Chairman of Changshin Textile, as well as Choi Do-sul -- the former presidential secretary.

Wi-Yong Jung Tae-Hoon Lee viyonz@donga.com jefflee@donga.com