GNP Returned 10 Billion Won to Samsung After Investigation Was Initiated

The prosecution has confirmed evidence that 10 billion won in bonds among the 33 billion won in bonds offered by Samsung to the Grand National Party (GNP) during the 2002 presidential election have been returned. It was right after the investigation into the presidential campaign funds had been initiated

This greatly contradicts the GNP’s insistence that “they have returned 17 billion won in bonds, which were left right after the election, to Samsung through Seo Jung-woo, Lee Hoi-chang’s former legal advisor who is currently under restraint.”

The Central Investigation Department of the Supreme Public Prosecutors’ Office reported on March 7 that “we obtained the information while questioning related officials including Lee Hak-soo, Samsung’s restructuring head manager” and added, “We will announce investigation results on the eighth regarding the return of the bonds.”

The prosecution suspects that the GNP has returned the money after finding out that the investigation was initiated into campaign funds while they had been keeping the unused money for other uses then on. It is also investigating whether there are any other remaining bonds in the GNP’s possession.

It was known that the prosecution would pronounce their will to continue the investigation into other Chaebol groups, including Samsung, regarding the case in their announcement on March 8. The prosecution plans to announce the scope of the illicit campaign funds of Roh’s camp and the GNP’s, but it was known that there was proof that Roh’s camp had received illicit political funds from Samsung.

Meanwhile, the prosecution sought a warrant once again the same day to Yeo Taek-soo, former aide of the President, which was declined once before. Yeo is suspected of receiving 300 million won of illicit funds from Lotte.

“Yeo once insisted that he had received 200 million won from Lotte but has made clean breast of the case and testified that he had received 300 million won,” said a related official from the prosecution. “Yeo is not testifying clearly on how they have spent the 100 million won among the 300 million, excluding the 200 million which was used in the formation of the Uri Party.” The prosecution is now focusing on the possibility of private usage of this fund.

jefflee@donga.com