President-elect Probed by Special Counsel

The probe into fraud charges involving President-elect Lee Myung-bak has reached towards its end with the independent counsel visiting and questioning Lee face-to-face on Feb. 17.

With less than a week left before the deadline of the probe which was once extended (Feb. 23), questioning Lee effectively marked the final highlight of the probe.

From the outset, Lee requested a written investigation since having the independent counsel conducting face-to-face investigation, as suggested by it, may cause political abuse and raise security concerns. However, the counsel could no longer afford to spend more time on reviewing ways to conduct its investigation.

The counsel was well aware of the public controversy sparked by the fact that prosecutors concluded their probe with a written investigation on Lee last year. Therefore, a face-to-face investigation was necessary in one way or another.

In the end, Lee decided to accept the counsel’s compromise in which it offered to conduct the investigation somewhere other than its office or that of the presidential transition committee. They finally met in a Korean restaurant called “Samcheonggak” in Seongbuk-gu, Seoul.

Lee answered questions prepared beforehand by the counsel and personally signed the deposition after the investigation was over.

An official of the counsel said on Feb. 18, “Lee was sincere and earnest in answering our questions. We did not need more than the three hours we had because we made thorough preparations.”

It has been reported that the independent counsel began drafting its report on the findings of its probe together with what they learned through the face-to-face investigation on Lee. Many around the counsel predicted that Lee would be freed from most of the charges facing him.

Assistant prosecutor Kim Hak-geun said on Feb. 18, “Lee was called in for drawing up a written statement as an inquiree. If the charges facing him are proved and that the counsel brings an accusation against him, he will be summoned once again as the accused for interrogation. However, he was not questioned as the accused yesterday.”

Lead counsel Chung Ho-young went on to say, “I am satisfied with the face-to-face investigation. It was sufficiently conducted.” In other words, there is no need for an additional investigation on Lee as the accused.

As for the BBK stock price manipulation scandal, it has been reported that the charges are likely to fall solely on Kim Kyung-jun who has been giving inconsistent statements. A U.S. federal court also ruled that Kim was guilty of some fraud and embezzlement charges in the first trial.

Authorities also failed to confirm the allegations over Lee’s involvement in the fraud distribution of land regarding a development project called the Digital Media City (DMC) in Sangam-dong, Seoul. Rumors have it that only a part of the charges were proved regarding the Korean German Industrial Park Company’s failure to implement its contract for the distribution of the land.

The remaining issue which Chung was intent on pinning down is whether Lee is the actual owner of the controversial company DAS and land in Dogok-dong, Seoul. Prosecutors stirred controversy last year when it ambiguously announced that the land was owned by a “third party.”

The results of the independent counsel’s probe are likely to be announced on Feb. 22, a day before the deadline. The counsel will reportedly bring their findings to President Roh, who the counsel decided as the final person to receive the report since the probe was conducted on President-elect Lee.

bell@donga.com