Prosecutors Arrest Fmr. Presidential Secretary Jeong

A special investigation team of the Busan District Prosecutors’ Office, which has been investigating an alleged business-politics tie between building contractor Kim Sang-jin, 42, and former presidential protocol secretary Jeong Yun-jae, 44, arrested Jeong on Thursday on charges of violating a law regulating political funding.

Yoon Geun-soo, a senior judge at the Busan District Court, said that he issued an arrest warrant because “The suspect appears to have attempted to manipulate evidence and there is a possibility that he will attempt to leave the country given the serious nature of his crime.”

A follow-up investigation began on September 31 after the court dismissed an arrest warrant for Jeong on September 20.

Meanwhile, the 14 standing committees of the National Assembly, including the Legislative Committee, conducted a parliamentary audit of related government ministries and affiliated organizations for the second consecutive day on Thursday.

Grand National Party lawmakers grilled the KIBO Technology Fund and the Korea Credit Guarantee Fund (KCGF) at the Finance and Economy Committee’s audit session on suspicions of unlawful dealings with former presidential aide Jeon and protecting Kim, who owns construction firms in Busan.

“Loans were approved by the KIBO and KCGF to Juseong Construction and Hanrim Construction, two affiliates owned by contractor Kim, in April 2003, based on the bogus contract of constructing the entrance road to the East Busan Tourism Complex. Would it have been possible if there was no political pressure?” GNP Rep. Seo Byeong-su inquired.

Politicians also bickered over the qualifications and the morals of United New Democratic Party presidential candidate Chung Dong-young and GNP presidential nominee Lee Myung-bak at numerous standing committee audit sessions.

“Chung’s father served as a stenographer for a financial industry union during the Japanese colonial rule. Chung should candidly admit this fact and have it verified by the public,” said GNP Rep. Jeong Du-eon in raising the suspicion of Chung’s pro-Japanese family background during the Government Administration and Home Affairs Committee’s audit session.

“Lee, who owns three buildings, has reported his annual rental income from his properties to be more than 900 million won less. He has evaded a large amount of taxes and health insurance payments,” said UNDP Rep. Kang Ki-jeong at the Health and Welfare Committee’s audit session.

verso@donga.com mindy@donga.com