Pres. Lee`s son to face grilling over retirement home scandal

The son of President Lee Myung-bak is expected to face questioning from prosecutors this week as an independent probe is stepped up into alleged irregularities in the land purchase for the president`s retirement home in southern Seoul.

The special counsel will also summon for grilling the president`s eldest brother Lee Sang-eun, who is the chairman of DAS Corporation, as soon as the 79-year-old businessman returns home from China Wednesday.

On the source of the funds used to buy the land, investigators were working to confirm through diverse channels the validity of the statement of the president`s son Lee Si-hyeong that said, “I borrowed 600 million won (540,000 U.S. dollars) by writing a promissory note (to Lee Sang-eun), brought the money in cash, and kept it in a closet at the presidential office.”

The special counsel is conducting the investigation on the assumption that the 600 million won might not have come from Lee Sang-eun. It wants to know if the money was from Lee Sang-eun, why Lee Si-hyeong brought it in cash rather than receiving a wire transfer, and why the money was kept at the presidential office.

Three inspectors on Sunday visited Kim Se-wook, a former officer at the presidential office’s general affairs unit who is in custody at the Seoul Detention House. He was asked when the money was used to buy the land.

Kim is undergoing trial after being arrested and indicted in August for receiving two gold bullions worth 120 million won (110,000 dollars) from Kim Chan-gyeong, chairman of Mirae Savings Bank. The former officer, who was in charge of President Lee’s retirement home, was responsible for the money transfer for the land purchase and tax payment.

The special counsel also plans to immediately summon Lee Sang-eun, who is returning from China on Wednesday, as it focuses on tracking related bank accounts including those of DAS.

The probe is also coordinating the schedule to summon the DAS chairman`s wife, who received a subpoena Sunday but has delayed appearing for questioning due to health reasons. She is alleged to have handed over the 600 million won to Lee Si-hyeong in person.

jks@donga.com