Korean Job Discussion Forums

[garykasparov]

http://www.theworldpress.com/press/worldpress/southkoreapress/herald.htm

Arrest of fraud suspect to expedite BBK probe





State prosecutors are expected to launch a full-scale probe into a fraud scandal involving Grand National Party candidate Lee Myung-bak following the court's decision yesterday to issue an arrest warrant for Lee's former business partner Kim Kyung-jun.

The charges against Kim include embezzling, stock price manipulation and forgery.

Authorities are likely to beef up the investigation because Nov. 25-26 is the candidate registration period for the Dec. 19 presidential election. After registration, Korean law does not allow candidates to be arrested or detained unless accused of crimes carrying prison sentences longer than seven years. It is not known if the alleged crimes against Lee would apply to this statute.

The majority United New Democratic Party, which alleged that the GNP candidate is jointly responsible for the crimes Kim committed, is leading the liberal parties to step up their offensive against the conservative party.

The GNP, for its part, continues to deny the allegations and seeks to minimize the fallout from the scandal.

"Kim is trying to avoid legal responsibility by saying he was a BBK employee. He is making false claims that Lee was the owner of both BBK and LK-eBank with completely fabricated evidence," said Rep. Hong Joon-pyo, head of the GNP's Clean Politics Commission.

Hong earlier accused the UNDP of conspiring with Kim to push the GNP nominee out of the race. He and other GNP lawmakers suspected the liberal forces of striking a clandestine deal with the extradited Kim.

The UNDP yesterday announced it would lodge a slander complaint with public prosecutors against Hong and two other GNP lawmakers - Chung Hyung-gun and Park Kye-dong - for spreading false information and defaming the party.

The GNP has persistently voiced concerns that the return of Kim could be a reprisal of the so-called Kim Dae-up case. Kim Dae-up, a military recruiter, claimed during the 2002 election that GNP candidate Lee Hoi-chang bribed officials to help his sons dodge mandatory military service. Kim was later convicted of making false accusations, but that was after the GNP lost the presidency.

The 41-year-old suspect arrived last Friday after being extradited from the United States. His sudden extradition fueled speculation that he may have a political motive, but Kim denied such allegations. A U.S. court approved Seoul's request to have him extradited in 2005, but Kim filed an appeal for U.S. protection. Kim withdrew his appeal on Oct. 8.

Kim, who has so far been incarcerated in the United States for embezzlement and rigging stock prices, co-founded a financial holding company called LK-eBank in 2000. LK-e was charged with a number of irregularities and also invested in the now-defunct BBK, which was shut down by the government.

State prosecutors, meanwhile, appear in a bind amid mounting pressure from political parties and a credibility crisis triggered by former Samsung attorney Kim Yong-chul. He alleges that ranking prosecutors, including prosecutor-general nominee Lim Chai-jin, have been bribed regularly.

The former Samsung attorney claimed last month that the conglomerate has huge slush funds in bank accounts created under borrowed names used to bribe government officials, prosecutors and the press.


By Song Sang-ho


([email protected])






2007.11.19

[Optimus Prime]

I call for criminal background checks, health checks, notarized and appostilzed documents for all Korean politicians. NOW!