Internal Investigation of Rep. Lee Kwang-jae Suspended

On June 2, the Seoul District Public Prosecutors’ Office Special Investigation Department Three (director: Hong Man-pyo) which is currently investigating suspicious practices involving the Korean National Railroad’s (currently Korea Railroad) investment in a Russian oil development, announced they have uncovered circumstantial evidence that Rep. Lee Kwang-jae of the Uri Party had direct and indirect relations to the oil development, but due to the disappearance of geologist Heo Moon-seok (indictment suspended), the core character of case, the degree of intervention of Rep. Lee cannot be determined.

The prosecutors revealed this in their middle investigation report and have decided to suspend the internal investigation. The prosecutors said, “We have concluded that Cheong Wa Dae did not instruct or plan the oil development project beforehand.”

The prosecutors added that among the documents hoarded by relations of the Korea Railroad, during the auditing process of the Board of Audit and Inspection (BAI), not only documents of questions and answers but semiannual audit reports were also included.

The prosecutors have prosecuted under custody the five people the BAI requested for investigation including ex-vice minister of the Ministry of Construction and Transportation Kim Se-ho. Prosecutors suspended the indictment of geologist Heo, who fled to Indonesia.

In addition to the oil development case, prosecutors have decided to continue their investigation into the relations of political circles behind the scenes of Heo’s North Korean construction material extraction business.

On the other hand, the investigation revealed that there is a large probability that the Korea Railroad will actually have to pay the 12 billion won that had promised to real estate developers such as Jeon Dae-wol (prosecuted under custody).

woogija@donga.com