7.3 Billion Won from Former President Chun’s Secret Fund

The Central Investigation Department of the Supreme Office of Prosecution has disclosed on February 10 that among the 16.7 billion worth in mysterious fund possessed by Chun Jae-yong, the second son of the former president Chun, about 7.3 billion won was confirmed to be the secret fund of Chun.

The prosecution has decided on this day that they will issue an arrest warrant to Chun Jae-yong for suspicion of tax evasion which is listed in the aggravation punishment law.

“For the mysterious fund investigation, we have found that 7.3 billion won came out of the fund managed by the presidential accountant around April 1987,” remarked the person concerned in the prosecution.

As for the 5.4 billion won in the fund, the prosecution has decided to drive forward the measure to impose penalty tax on the full amount of it through examining the law. The prosecution is tracking down the remaining 11.3 billion won, grounding on the possibility that it could be included in Chun’s secret fund. Applying the suspicion of avoiding the donation tax, the prosecution will restrict Chun before everything to investigate the sources of the 16.7 billion won.

In addition, as a result of prosecution’s investigation, Chun has spent the mysterious fund, 16.7 billion won, to purchase stocks and CP (5.3 billion won), debenture (3.4 billion won), real estate (3.3 billion won), and venture companies (2.1 billion won, among this, $1 million was sent to the U.S.). In addition, it has been revealed that Chun made use of the account in the name of the popular celebrity P’s mother, the certain Yoon.

The prosecution has confiscated 500 million won worth in securities, 230 million wonworth in cash, 160 million won worth in bankbook, and $50,000 worth in traveler’s check.

On the other hand, together with this investigation, the prosecution has decided to hunt down the 100 billion won secret fund of Chun which they have failed to trace.

At the time when the prosecution investigated the former president “Chun’s secret fund,” they assumed that Chun had gathered a 200 billion worth fund from the companies in the country and concealed it by divesting it into hundreds of pseudonym-used accounts, and purchasing the unregistered debentures.

Though the Supreme Court ordered Chun to pay 220 billion won in 1997, he has delivered only 33.2 billion won, and asserted on his list of assets that his remaining properties are only worth 290,000 won.

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