Chris Kim Arrested

Prosecutors arrested Chris Kim (41), a key figure in the BBK stock manipulation scandal implicating Grand National Party (GNP) presidential candidate Lee Myung-bak yesterday on charges of embezzling corporate funds, rigging share prices, and forging documents.

Judge Lee Kwang-man at the Seoul Central District Prosecutors’ Office reviewed the prosecutors’ investigation records and issued a warrant for Kim on the basis that the suspect may attempt to escape or to destroy evidence.

Prior to this, a special investigation team at the Seoul Central District Prosecutors’ Office requested an arrest warrant for Kim on November 17. Kim originally applied for a warrant examination, but he abruptly dropped it in about 1.5 hours.

Kim is suspected of artificially raising the stock prices of Optional Ventures Korea by employing 38 bank accounts and spreading false rumors that the firm would be acquired by a foreign company between December 2000 and December 2001.

In addition, Kim also allegedly embezzled 38.4 billion won between July and December in 2000, and forged seven U.S. passports and 19 certificates of incorporation in Nevada in the U.S. and submitted those false documents to secure a foreign investment registration certificate from Korean government agencies.

These allegations were used by the Korean justice ministry in January 2004 when it requested Kim’s extradition from the U.S.

The prosecution plans to focus on its investigation into the allegations raised by the United New Democratic Party (UNDP) involving Lee’s implication of BBK stock manipulation, and accusations by Ji Man-won, a commentator on military affairs, that candidate Lee failed to report Dogok-dong land in Seoul as his property.

The prosecution reportedly sent documents that Kim brought from the U.S. to the document examination team at the Supreme Public Prosecutors’ Office or the National Institute of Scientific Investigation in order to verify their authenticity.

Meanwhile, about 200 stock investors in Optional Ventures Korea created, “The Committee for Stock Manipulation Victims” and held a press conference at the Seoul Central District Prosecutors’ Office Sunday, criticizing, “Kim and his family have enjoyed a sumptuous lifestyle abroad with embezzled money. Finally he is being extradited to Korea to face justice. However, he is behaving as if he is a hero who is holding the nation’s future in his hands.”

needjung@donga.com wing@donga.com