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Inconsistency Found in Lawmaker-elect’s IOUs

Posted May. 13, 2008 08:30,   


The Supreme Prosecutors’ Office yesterday said lawmaker-elect Yang Jeong-rye of the main opposition United Democratic Party wrote three IOUs at inconsistent interest rates.

Prosecutors say the inconsistency is evidence of manipulation.

The annual interest for the IOUs were 1.4 billion won given by Yang to the party in late March and a check for 100 million won in early April. Yang reportedly lent 1.6 billion won to the party along with 100 million won in special membership fees.

The other IOU for 100 million won that Yang gave the party in early April had an annual interest rate of 10 percent under a different name.

Prosecutors say the IOU inconsistency, including annual interest rates and names, is because the party and Yang failed to make a consistent form of IOUs while belatedly manipulating the illicit funds that Yang gave the party under the guise of loans.

A figure responsible for accounting for the Pro-Park Alliance who was arrested last week was questioned. Identified only as Kim, he was grilled on the IOU inconsistency.

The annual interest rate fell from 10 to eight percent while Kim wrote a new IOU for 50 million won. This was after he deposited 50 million won first in the party’s bank account out of the 100 million won Yang sent.

The results of a study into when the IOUs were written are out, but no decisive impact is expected on the investigation.

wing@donga.com dnsp@donga.com