State audit on political scandal surrounding the Mir and K-Sports foundations

Lee Seung-cheol, vice chairman of the Federation of Korean Industries, took the witness stand on Wednesday for the state audit on political scandal surrounding the Mir and K-Sports foundations, but declined to answer most of the questions asked by lawmakers. Lee dodged questions such as who actually mobilized funds, whether the foundations had prior consultations with the presidential office, and whether the remarks by the Korea Employers Federation that fund was raised forcefully, and only replied, “Those issues are under investigation.” Opposition party lawmakers claimed that Lee's acts constitute violation of the "act on testimonies and emotions" that permits a person to deny testimony only when he or she could face criminal charges or be convicted. We sympathize with Minjoo Party Rep. Park Young-sun’s remarks “Do you have immense power behind you, or do you believe you has the power?”

　

A flurry of suspicions have continuously been raised, including rumors that the two foundations planned to raise an additional 35.5 billion won (31.6 million dollars) over the next five years, and the Mir Foundation has even influenced Saemaeul Undong (New Community Movement) projects. Vice Chairman Lee, who holds key to addressing suspicions, was tightlipped at the parliamentary inspection session, which just disregards the National Assembly. Adoption as witnesses Choi Soon-shil (who changed name to Choi Seo-won) who is considered power elite among President Park Geun-hye’s secretive aides, and others, was denied due to opposition by the ruling Saenuri Party, and a witness who managed to take the witness stand remains tightlipped, which in turns has effectively made Mir into the most untouchable organization under the incumbent government.

On the suggestion that the Federation of Korean Industries be dismantled, insiders of the presidential office have expressed opposition unofficially. The presidential office is saying that Federation of Korean Industries has many positive functions including mobilization of funds in the event of a major disaster. Deputy Prime Minister Yoo Il-ho recently said, “Dismantling the organization is an issue that the federation should decide by itself,” but the administration apparently believes that Federation of Korean Industries can still be highly useful. As the federation sought to take responsibility by claiming that the federation had taken the lead in raising funds, the presidential office, the government, and the ruling party seems to have formed strong unity and seek to back up the Federation of Korean Industries in the most aggressive way possible. A photo of Vice Strategy and Finance Minister Choi Sang-mok touching in all smiles a shoulder of FKI Vice Chairman Lee at the parliamentary inspection site also seems to suggest solid bond between the federation and the incumbent government.

As Speculation Watch (Center for Inspecting Speculative Capital) filed legal complaints against Vice Chairman Lee and former presidential secretary for policy coordination Ahn Jong-beom late last month, prosecutors started investigation on Tuesday. However, the prosecution, which has not been very active in investigation into political power, will unlikely discover and present clear-cut answers to suspicions. Park Jie-won, the People’s Party’s emergency committee chairman, has said he will seek an independence council to investigate the case after learning the results of the ongoing probe, but an independence council will most likely be blocked due to the National Assembly Advancement Act. We wonder why the National Assembly is conducting parliamentary audit in the first place, if lawmakers cannot afford to call Ms. Choi or Ahn as witnesses, while Vice Chairman Lee remains tightlipped.

홍수용기자 legman@donga.com