Rep. Lee Kwang-jae Involved in Oil Scandal

The Seoul District Prosecutor’s office, which is in charge of the oil scandal involving the Korean National Railroad (KNR), is investigating the former deputy minister of construction and transportation, Kim Se-ho (then-president of KNR) on May 30, as he was found to have told his subordinate to include the oil business in the ministry’s New Deal Plan (a comprehensive project to boost the economy).

According to the prosecution, the former deputy minister gave the instruction to an official of the ministry during the New Deal Research and Development Conference presided by himself last October.

However, a prosecutor said, “As the oil business failed to materialize, it was not included in the New Deal Plan.”

Meantime, Kim was told by Shin Kwang-soon (arrested), then president of the KNR, and Wang Young-yong (arrested), the manager of KNR Business Development Team, that they were having difficulties in funding the oil business and introduced executives of the SK Company to them.

The prosecution also said it was in the private office of Lee Ki-myung, who was the president of supporters’ association for President Roh during the campaign period, that a real estate agent and a geologist who were involved in the scandal met through the introduction of Rep. Lee Kwang-jae of the ruling Uri Party to Lee Ki-myung.

The prosecution allegedly obtained circumstantial evidence that Rep. Lee and some high-ranking government officials were involved in the scandal. One prosecutor said, “There is new evidence that was not revealed,” and added, “It will be made public in an interim statement that will be made around June 2 or 3.”

Meanwhile, the first trial slated for Sunday of Wang and Park Sang-jo (arrested), the former manager of the KNR Card Business Team, was delayed to June 13 at 10:00 a.m. at the request of the prosecution.

woogija@donga.com