ULD Leader Faces Summons for Allegedly Taking Illegal Funds


By Na Jeong-ju
Staff Reporter


Rhee In-je, acting chairman of the United Liberal Democrats (ULD), took 250 million won in illegal political funds from the majority Grand National Party (GNP) in the final days of the 2002 presidential race, prosecutors said on Friday.

Rhee, a political nemesis of President Roh Moo-hyun, will be summoned for questioning next week over the funds, which prosecutors claim was part of a GNP plot to get his backing for its presidential candidate Lee Hoi Chang.

Then-GNP candidate Lee led polls just days before the election day, but he eventually lost to then-ruling Millennium Democratic Party (MDP) candidate Roh.

The new allegations are likely to spark further public anger and frustration at the GNP, which is facing a deepening leadership crisis amid charges of illegal election fundraising. The party has been at the center of mounting criticism after it was alleged on Wednesday to have paid 11 lawmakers from other parties to join its ranks before the 2002 election.

An arrest warrant was sought for Rhee’s former adviser, Kim Yoon-soo, who allegedly intercepted another 250 million won in GNP funds that were supposed to have been handed over to Rhee.

According to prosecutors, Kim took two cardboard boxes each containing 250 million won from Lee Byung-ki, an advisor to then-GNP candidate Lee, in the lead-up to the presidential election. He intercepted one box and gave the other to Lee’s wife, Kim Eun-sook, prosecutors said.

The money appears to have been delivered to seek an alliance with Lee after the election, prosecutors said, citing testimony from then-GNP secretary general Kim Young-iel and other officials.

Rhee, 56, moved to the ULD in defiance of the result of the MDP primary election in the summer of 2002, in which he lost to Roh. Rhee’s defection mirrored his action in 1997, when the he joined the MDP after losing the then-ruling New Korea Party’s nomination race to Lee Hoi-chang.

Meanwhile, the prosecution will seek an arrest warrant soon for Lee Joong-keun, chairman of construction firm Buyoung, on charges of tax evasion and embezzlement.

Lee set up slush funds and provided illegal campaign funds to politicians from ruling and opposition parties during the 2002 presidential campaigns, prosecutors said.

The move against Lee came after the prosecution questioned him for the second day in a row amid rising tensions in the business community stemming from a widening investigation into conglomerates’ illegal campaign funding.

On Thursday, prosecutors said they would soon summon Lotte Group chairman Shin Kyuk-ho and other executives for questioning. The probe may then be expanded to larger groups _ Samsung, LG, SK and Hyundai Motor.

Investigators have gathered evidence to prove allegations that the nation’s top conglomerates supported election campaigns in 2002 with illicit contributions. Summons may be issued to Samsung chairman Lee Kun-hee, LG chairman Koo Bon-moo, SK chairman Chey Tae-won and Hyundai Motor chairman Chung Mong-koo.

Prosecutors said they had ordered Lotte vice chairman Shin Dong-bin to present himself for questioning on Friday at their office, but he didn’t return from Japan where he has been staying on business. Investigators are now considering detaining Shin.

Shin played a role in making illegal donations when Lotte Shopping president Shin Dong-in provided 1 billion won in illegal payments to Rep. Shin Kyung-shik of the main opposition GNP in late 2002, the prosecution alleged.

The lawmaker was arrested last month for violating election fund laws and put on trial.

During a court hearing on Friday, Rep. Shin said the Lotte Shopping president first approached him to deliver the political funds. He took the money from him at the basement of the shopping firm’s headquarters in southern Seoul, he said.

``Lotte wanted it to remain secret about the donations,’’ Shin told the judge. ``We didn’t issue receipts to accept their requests.’’

The lawmakers said about 3.5 billion won was given to district campaign offices, while the rest of the money was handed over to Lee Heung-joo, a special advisor for then-GNP candidate Lee Hoi-chang.

The Lotte money is part of tens of billions of won the GNP took in campaign donations from conglomerates. The total sum revealed, now standing at about 82 billion won, has increased as investigation continued.

jj@koreatimes.co.kr