The “Cheong Wa Dae Trio” Excluded

On June 16, the Board of Audit and Inspection of Korea (BAI), suspecting that the Korea Highway Corporation’s (KHC) development project of Haengdam Island was a hasty expedient, requested that prosecutors investigate four related individuals, including former KHC President Oh Jeom-rok, President of Haengdam Island Development Inc. Kim Jae-bok and two individuals involved in the issuing of bonds.

Additionally, the BAI has decided to request the reprimand of 12 people, including former Road Division Director of the Ministry of Construction and Transportation who wrote President Kim a document of intention of the government’s support. In addition, reprimands are sought for five administrative workers of the KHC who rushed the project unreasonably, and for six employees of Korea Post and Korea Teachers Credit Union who bought foreign bonds from Haengdam Island Development Inc.

However, the BAI does not seem to seek investigation of the three individuals who caused a controversy concerning their abuse of authority related to the matter. Former Presidential Secretary for Personnel Affairs Jeong Chan-yong, former Chairman of the Presidential Committee on Northeast Asian Cooperation Initiative Moon Jeong-in and former Presidential Secretary for National Economy Jeong Tae-in are not being investigated, on grounds that though their actions were inappropriate, their behavior is not a matter of penal responsibility.

Regarding this, the three opposition parties - the Grand National Party, the Millennium Democratic Party and the Democratic Labor Party - simultaneously criticized this action as an ‘indulgence audit’ protecting Cheong Wa Dae.

On this day, the BAI announced the semi-audit results related to the suspicious activities of Haengdam Island development.

감사원은 “도공이 외자 유치에 급급해 사업을 졸속으로 추진했고, 김 사장은 자본 조달 능력도 없이 무리하게 경영권을 인수한 뒤 도공의 신용을 빌려 투자자금을 조달하다 문제를 야기했으며, 정부 관계자들이 개인사업에 불과한 행담도 개발사업을 ‘S프로젝트’의 시범사업으로 잘못 규정해 무분별하게 지원한 문제점이 드러났다”고 밝혔다.

한편 한나라당은 이날 정 전 수석과 문 전 위원장 등 2명에 대해 독자적으로 검찰에 수사를 의뢰하기로 했다.

The BAI revealed, “KHC has hastily operated the project engrossed in attracting foreign capital, President Kim provoked problems by raising investment capital through KHC’s credit after the overstraining takeover without any means of raising capital, and relations of the government have erroneously appointed the Haengdam Island development project, which is just a private business, as the exemplary project of ‘S Project’ and indiscreetly supported the project.”

On the other hand, the Grand National Party has decided to independently request the investigation of former Presidential Secretary Jeong and former Chairman Moon.

Yong-Gwan Jung Kang-Myoung Chang yongari@donga.com tesomiom@donga.com