Evidence Obtained over Illegal Transferring of Hundreds of Millions before the Election

The special team of Busan public prosecutor’s office (superintendent public prosecutor Im Sang-gil) has obtained a clue that hundreds of millions of won were transferred from several construction companies based in Busan to the “M” company in Geumjeong-gu, Busan -- which is directed by the son (29) of Lee Yeong-ro. The prosecution is now probing into the details of the money transaction.

Lee Yeong-ro, who was a senior schoolmate of President Roh in high school, is now under suspicion for colluding with Choi Do-sul, the ex-presidential secretary, in receiving 1.1 billion won in slush funds from the SK group and is being admitted to the hospital because of his cerebral hemorrhage.

After investigating documents handed over by the Supreme Public Prosecutors and accounts of “M” company, Mr. Lee and his son, the prosecution acquired evidence that three or four main construction companies in Busan transferred hundreds of million of won to the account of “M” company. The prosecutors are now probing the details of the transference and usages of the money.

Considering the huge amounts of money compared to the company’s low profitability, the prosecution is exploring the possibility that those fund providers were trying to lobby high officials via the company by transferring that money. In the mean time, by issuing a seize and search warrant, the prosecution began a full-fledged investigation on four companies, including the Kuk-je Civil Engineering & Construction and the Jung-ang Civil Engineering & Construction -- both run by Kim Seong-cheol, the president of the Busan Chamber of Commerce and Industry, on the suspicions of providing illegal campaign funding or his personal wrongdoings.

President Kim is charged with falsely paying stocks by transferring stock prices on the account of Jung-ang Civil Engineering & Construction -- withdrawing 700 million won from the account of the Kuk-je Civil Engineering & Construction and immediately withdrew the money from the account of Jung-ang. Also, the Construction Association of Korea indicted him for his exaggerated report on the construction cost--margining 201.8 billion won--to get the beneficiary of receiving engineering and construction work orders.

mobidic@donga.com