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Samsung Gave an Additional 17 Billion Won in Bonds to Grand National Party

Samsung Gave an Additional 17 Billion Won in Bonds to Grand National Party

Posted February. 12, 2004 22:42,   


The prosecution investigating illegal election funds said on Thursday that in addition to the 15.2 billion won, Samsung Group gave 17 billion won in bonds to the Grand National Party (GNP) during the presidential campaign in December 2002.

“We found such clues while investigating private lenders,” said Ahn Dae-hee, the Central Investigation Department Chief at the Supreme Public Prosecutors Office. “GNP cashed in most of the bonds with the rest remaining.”

Prosecutors imposed an exit ban on a financial executive at Samsung`s Restructuring Office who was allegedly involved in raising the funds. He will be summoned for questioning.

The return of Samsung`s Restructuring Office Chief Lee Hak-soo who is overseas on a business trip will be automatically reported to the prosecution.

Samsung is suspected to have bought the bonds from private lenders and gave them to Kim Young-il, then-Secretary General of GNP in 2002.

Investigators are tracing the 11.2 billion-won bonds given to Seo Jeong-Woo, who served as a legal adviser to Lee Hoi-Chang, the former head of GNP. Two private lenders were questioned for encashment of the bonds.

Five large conglomerates, including Samsung, are under scrutiny on charges of offering illicit election funds to Roh Moo-hyun’s camp during the presidential campaign.

Tae-Hoon Lee jefflee@donga.com