Allegation on GNP and Roh Camp’s False Reporting on Campaign Spending

On December 2, the supreme public prosecution (An Dae-hui, chief prosecutor) probing the “illegal presidential fund raising” announced, “It was revealed that the main opposition party`s campaign fund total for last year`s presidential election was at least double or triple the 2.9 billion won (U.S. $2.42 million) that the party reported to the National Election Commission(NEC).” This information was discovered at the first trial of Lee Jae-hyeon, the former GNP financial official at the Seoul District Court.

Subsequent to the fact the prosecution had clues that the Grand National Party had falsely reported its fundraising and campaign spending, the prosecution has been investigating the Grand National Party’s illegal funds – money that was not kept in its book or money not reported to the NEC. Also, the prosecution has been probing as to whether the money was actually illegal funds sourced from corporations.

The prosecution has been expanding its scope of investigation and considering the possibilities that the camp of Roh Moo-hyun of last year may have falsely reported its political donations and leftovers in campaign spending.

On the night of December 1, the prosecution investigators summoned Kim Dong-jin, vice chairman of the Hyundai Motor Group, and interrogated him all night and eventually released him the next morning. The prosecution interrogated Kim over his allegation that he had raised illegal campaign funds through its affiliate, Hyundai Capital, and also sought to determine whether he provided any illegal funds to politicians during the presidential election period last year.

The prosecution will also summon Lee Hak-soo, head director of restructuring in the Samsung Group, and interrogate him on whether or not Samsung had raised and made any improper political donations.

Jin-Kyun Kil leon@donga.com