Lee Sang-soo Accused of Collecting 3.2 Billion Won Slush Fund

Prosecutors have summoned Rep. Lee Sang-soo of the Uri Party on January 27 on charges that he received a 3.26 billion won slush fund during the 2002 presidential election. Whether or not Lee will face arrest will be decided after the questioning to be held on January 28.

The prosecution claims that Lee withdrew 585 million won from the party account, purchased 270 million won worth of bonds, and deposited 315 million won in a borrowed account.

Lee served as the chief of the Millennium Democratic Party (MDP)’s general affairs bureau in 2002. Lee is under investigation for allegedly collecting 600 million won from Kumho and one billion won from Hanwha Group through Lee Jae-joung who was a MDP lawmaker at the time.

Lee is also accused of receiving 660 million won from Hyundai and one billion won from SK on December 5 and 7, respectively. “Because the money came from large conglomerates, and because both parties were fully aware of its illegal nature, the prosecution deemed the money was an illegal slush fund,” said Central Department chief Ahn Dae-hee.

However, the prosecution says that Lee is currently denying any form of embezzlement and is claiming that “the 585 million won was the money lent to the campaign party, and the one billion won bond from Hanwha was cashed and used as campaign funds.”

On a related note, the questioning of former Grand National Party (GNP) chairman Suh Chung-won, which was originally scheduled to take place on January 27, has been postponed to January 28 because of a request from Suh.

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