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Two Chaebol Leaders May Be Indicted

Posted March. 09, 2004 22:36,   

한국어

“We will take legal actions against the heads of conglomerates if they provided illegal presidential election funds in person or were deeply engaged in illicit fundraising,” announced the Supreme Public Prosecutor’s Office yesterday.

As the prosecution made such a decision, Korean Air Chairman Cho Yang-ho and Hanwha Group Chairman Kim Seung-youn may face indictment on charges of providing illegal presidential election funds.

Chairman Cho allegedly directed to provide one billion won each before the presidential election in 2002 to Kim Young-iel of the Grand National Party and Surh Jeong-woo, a lawyer close to former GNP presidential candidate Lee Hoi-chang. The two are now under detention.

Chairman Kim is suspected of giving one billion won to GNP`s Suh Chung-won directly in 2002.

The prosecution will decide whether to take legal actions against other company heads, including Hyundai Motor Chairman Chung Mong-koo and Samsung Chairman Lee Kun-hee, after conducting further investigation into how deeply they were engaged. “If a chaebol chairman was briefed about the fact after providing illicit funds, it is difficult to take legal actions against him,” said Senior Prosecutor Ahn Dae-hee. In this case, a chief of a corporate restructuring headquarter or those with similar charges will be subject to punishment, according to Ahn.

Prosecutors are considering a full-fledged interrogation into Hyosung Group on charges of providing 100 million won illegally to Rep. Choi Don-woong, the former GNP chief financial officer during the presidential election campaign.

They are also considering seeking an arrest warrant for Lee Joong-keun, chairman of Booyoung Corporation, on charges of raising huge amounts of illicit funds to give as funds to the presidential election camps.



Tae-Hoon Lee jefflee@donga.com