Prosecutors Make Headway in BBK Stock Price Probe

The Seoul Special Prosecutor Team investigating the BBK stock price manipulation scandal confirmed on November 20 that documents sent from Kim Gyeong-jun turned out to be a stock purchase and sales agreement between LKe Bank and AM Papas in February 2001. The scandal involves Lee Myung-bak, the presidential candidate of Grand National Party (GNP).

The agreement said that LKe Bank was co-founded by Lee and Kim, and that AM Papas was a paper company set up in the U.K. Virgin Islands as a tax haven.

An official from Lee’s campaign said on November 20, “The agreement does not contain any phrases or content indicating agreement on the sidelines. Kim allegedly argued that there was a verbal agreement on the sidelines without presenting evidence.”

Kim’s lawyer, Park Soo-jong, met with reporters in his office in Seocho-dong, Seoul, and announced that, “Kim is apparently denying accusations.” He also said that he would resign as Kim’s lawyer.

needjung@donga.com