Lobbying Incumbent and Former Lawmakers with One Billion Won Each

Prosecution authorities revealed that the president of an advertisement agency allegedly bribed five incumbent and former lawmakers, government officials, and influential figures in the athletic circles with approximately 400 million won in order to gain business rights for operating outdoor billboards in the run-up to the Daegu Summer Universiad held in August 2003.

The special agency of the Daegu district prosecution’s office announced on February 17 that it will summon current and former lawmakers, public officials, and high-ranking officials in the athletic circles who took seats in the executive committees of the Daegu Universiad for allegedly taking huge bribes from the president of company “J,” known as Mr. Park, aged 48 (currently under arrest), and investigate them from next week.

According to the prosecution office, Mr. Park gave 80 million won to the representative director of the Association of Daegu Advertisement Goods Production Cooperation, Mr. Lee, aged 48, who is under arrest, to secure construction rights of outdoor sign boards ahead of the Daegu Universiad Games in early 2003.

The prosecutors have also reportedly found that Mr. Park gave a former lawmaker known as “K”, a senior officer of Korea Sports Council known as “P,” and a city legislator in Daegu known as “L,” who were members of the Universiad executive committee, money ranging from tens of million to hundreds of millions won respectively as lobbying money.

Reports have it that former lawmaker “K,” a member of the Universiad executive committee “P”, a city legislator and member of the executive committee “L,” and a senior official of Daegu Universiad office and incumbent high-ranking public servant “L” received 100 million won, 50 million won, 20 million won, and around 100 million won, respectively.

Advertisement agency “J” was selected as a business operator for outdoor ad facilities in May 2003 through a callable contract with the organizing committee of the Daegu Universiad Games. The prosecution found that Mr. Park gave another incumbent lawmaker 100 billion won in the name of money for political activities and is investigating the fact.

Reportedly, the lawmaker who is known to be a member of the Culture and Tourism Committee in the 16th National Assembly left receipts for most of the money from Mr. Park, but prosecutors are focusing on revealing whether or not the money was for returns.

The prosecution will summon the five suspects next week at the earliest, and it will go through judicial process with charges of breach and trust and misappropriation if the suspects are found guilty.

Prosecutors believe that there will not be much difficulty in proving whether the lobbying money was for returns or not since the values of the then outdoor billboard business were tantamount to around 57 billion won and the operation rights were given through a callable contract.

Meanwhile, prosecutors have found out that Mr. Park established a slush fund amounting to around 5.5 billion won since 2000 as it exchanged fake certificates for tax payments with business partners, and they are interrogating him about where he used them and for what purpose.

Yong-Kyun Jeong cavatina@donga.com