Speculation Becomes Rampant over Uri Party’s Founding Funds

The disclosure that 200 million won in slush funds which Yeo Taek-su, administrator of the first annex of the presidential office, received from the Lotte Group has been spent for the launching of the Uri Party has raised fresh attention to how much and where the pro-president party has raised its money when being launched.

Since last year, the Grand National Party (GNP) has alleged that a staggering amount of illicit funds, which former presidential aide Choi Do-sul raised, was funneled into the Uri Party when it was launched. However, the allegations have never been substantiated. The Uri Party said each of the 43 lawmakers who defected from the Millennium Democratic Party borrowed 20 million won, or a total of 860 million won, from the National Assembly complex branch of Nonghyup, a farming credit union, to raise the founding funds when the party started on November 11, 2003.

An additional 400 million won the party raised included the 200 million won Yeo received from Lotte, which was funneled into the party via Rep. Kim Won-ki and former presidential aide Ahn Hee-jung. The remaining two million won was the loan that Rep. Lee Sang-su, then-chairman of the party’s general affairs committee, arranged through his law firm. This 200 million won was repaid to Lee late last year. “Reps. Kim and Lee respective gave 200 million won which they borrowed for the party headquarters’ rent deposit,” Kim Hong-seop, the party’s headquarters manager who was a treasurer at the time of its launch, said, “We repaid Rep. Lee the debt sometime between November and December while we have yet to pay Rep. Kim.” He added that 189 million won in dues paid by founding members contributed to the party’s launch.

However, speculation has been raised as to whether or not a total of 1.44 billion won the Uri Party has disclosed is all that the party has spent for its launching. “We did not spend money not because we did not have enough,” said Lee Jae-jeong, the former lawmaker who’s been heading the general affairs and management committee of the part, adding “Because free spending does not fit in with the identity of the party.” Party officials said his remark is merely a generalization which implied that the governing party can raise whatever amount of political funds it wants if it decides so. However, it is a reasonable guess that there would be a number of temptations when a genuine governing party was formed.

Rep. Lee would need to explain more about the 200 million won he reportedly borrowed to lend to the Uri Party. He was the chairman of the general affairs committee during the presidential race and was responsible for finances as general affairs chairman when the Uri Party was launched.

When it disclosed the revenue related to its launch, the Uri Party promised it would further reveal the details in consultation with Samjeong Accounting Co., the auditor it retains. It has yet to go public with them.

Young-Chan Yoon Seung-Heon Lee yyc11@donga.com ddr@donga.com