Hundreds of Millions of Won in Slush Funds to Roh’s Camp and the GNP

On January 19, the prosecution discovered that candidate Roh Moo-hyun’s campaign team collected approximately 100 million won without receipts from the Federation of Korean Industries, the Korea Chamber Of Commerce ＆ Industry, the Korea International Trade Association and the Association of Korea Oriental Medicine during the 2002 election.

The prosecution summoned Rep. Lee Sang-soo of the Uri Party, and the investigation revealed that the organizations had illegally donated 30 to 50 million won to the supporters’ association of the Millenium Democratic Party (MDP). On the other hand, the Grand National Party (GNP) made out receipts for their donations of similar amounts.

Dae-a Engineering and Construction Co., Ltd. is under investigation as prosecutors found clues that it gave Roh’s camp and the GNP hundreds of millions of won in slush funds.

Prosecutors will summon the CEO of Dae-a Engineering and Construction for questioning over allegations of illegal contributions during the presidential election.

The prosecution also found that Seohai Construction Co., Ltd. had given a few hundred million in illicit funds to Roh’s campaign team. As a result, the slush fund of Roh’s camp in 2002 is expected to total over seven billion won.

It has also been confirmed that the Kumho Group changed cash into old checks and obligations to bearer to bribe Roh’s campaign team.

The prosecution will summon several politicians out of the 10 who are banned from leaving the country who have allegedly used illicit funds in private ways right after the Lunar New Year’s holidays.

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