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Prosecutors pick up pace in BBK probe

The investigation into financial fraud involving presidential frontrunner Lee Myung-bak's former business partner is on the fast track, as prosecutors are racing against time to conclude the case as early as within the week.

Investigators have questioned key witnesses, including Lee's confidants who were connected to his partnership in 2001 with Kim Kyung-jun, the prime suspect in the stock price manipulation and embezzlement case. He was arrested on Sunday.

Kim and his sister reportedly submitted evidence to the prosecution in a move to support their allegation that Lee was directly involved in the scam.

Lee's aides and the Grand National Party are actively cooperating with the investigation, in a bid to clear him of allegations before the Nov. 25-26 presidential candidates' registration.

The conservative party is trying to make sufficient argument on Lee's behalf, so that the prosecution need not summon Lee himself -- an event which would deal a serious blow to his campaign.

Prosecutors are expected to announce the interim result of their probe this week, so as to avoid disrupting the campaign.

Political parties are not allowed to change their candidate after the registration, unless he or she dies.

The investigators have already queried key witnesses in the case, including Kim Baek-jun, Lee's closest aide and a former executive at LK-eBank, which was co-founded by Lee and Kim, and Lee Jin-young, Lee's former secretary when Lee was the mayor of mayor.

Also questioned were several other former employees of Optional Ventures, a venture capital firm that Kim Kyung-jun operated in 2001. Kim allegedly rigged the stock prices of the company by spreading false rumors that the firm was to be acquired by foreign investors.

Regarding the deadline for the authorities to present their investigation results, the prosecution is being cautious in what it says.

"We can't comment much on this highly-publicized case. We ask for your understanding," Kim Hong-il, the prosecutor in charge told reporters yesterday.

The GNP dismissed any possibility for Lee to be called in for an inquiry.

"That (Lee's summons) will never happen. The matter of summoning a party's candidate during a presidential campaign is not even worth talking about," GNP spokesman Park Hyeong-joon said.

GNP candidate Lee said that the prosecution has no reason to summon him. "If prosecutors look into the case, they will discover that I have no relation whatsoever (to the fraud case)," he said yesterday at a meeting with the Korea Broadcasting Journalists Club.

The 41-year-old suspect reportedly submitted a document which shows that Lee was the real owner of BBK, an asset management firm run by Kim. Previously, Kim told local media that the capital for LK-eBank and BBK all came from DAS, an auto parts maker owned by Lee's brother and brother-in-law. DAS is claimed to have been owned by Lee.

Kim had said he would present the document to prove the claim, after he arrived in Seoul.

Lee said yesterday that there will be no such document.

"I am not sure what he is talking about. If the document had ever existed, why had he refused to come to Korea for three years?" said Lee.

Erica Kim, Kim's sister, sent a parcel of documents to Kim's lawyer which is expected to be presented to the prosecution. It was sent on Nov. 13, two days before Kim's extradition.

Prosecutors are verifying the authenticity of the documents. The GNP last week said that they were all fabricated, given his record of forging official documents.

The prosecution is reportedly focusing its probe on the connection between Lee and Kim -- namely on whether Lee was involved in the stock-price rigging and embezzlement of company funds which Kim has been charged with.

By Song Sang-ho

2007.11.20

http://www.koreaherald.co.kr/NEWKHSITE/data/html_dir/2007/11/20/200711200023.asp

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