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[garykasparov]

Arrest warrant issued for leading presidential contender's ex-business partner




A Seoul court on Sunday issued an arrest warrant for a former business partner of Korea's leading presidential contender on accusations of stock price manipulation and corporate fund embezzlement, reported Yonhap News Agency.

The issuance of the writ for Kim Gyeong-jun signals the start of a high-stakes probe of his former business partner, presidential candidate Lee Myung-bak of the conservative opposition Grand National Party (GNP), a month before the Dec. 19 election.


Prosecutors sought the arrest warrant late Saturday for Kim, a U.S.-educated fund manager, on allegations of stock price manipulation and the embezzlement of 38.4 billion won ($41.9 million) from investors. Kim established the investment firm BBK in Seoul in 1999, and co-founded the LKe Bank with Lee the following year.


Prosecutors initially obtained a warrant from a Seoul court in 2004 to arrest Kim, who had fled to the U.S., and asked the U.S. to extradite him. For several years, Kim appealed a U.S. court ruling that approved his extradition, but withdrew his appeal last month. The U.S. State Department decided on Oct. 31 to re-approve his extradition.


Kim was taken into custody on Friday and did not challenge the legality of his arrest, according to prosecution sources, paving the way for the court to expedite the issuance of the warrant. Kim had originally expressed intent to seek a hearing to challenge the warrant, but changed his mind early Sunday for unknown reasons, the sources said, saying the court may be able to make a decision on the warrant later in the day.


Lee's approval rating hovers at around 40 percent and has said that he himself was a victim who suffered a loss of around 3 billion won worth of investments. He has denied any involvement in stock price manipulation.


GNP spokesperson Na Kyung-won called Kim "an international swindler who lied as soon as he returned," referring to Kim's remark that his return was not scheduled to coincide with the election.


Another member of the party, Rep. Hong Joon-pyo, alleged that the incumbent Roh Moo-hyun administration and the pro-government United New Democratic Party (UNDP) negotiated with Kim to arrange his repatriation one month ahead of the election. The GNP lawmaker also claimed that Kim lied to reporters by saying he has concrete evidence to prove Lee Myung-bak's connection to the financial scam.




2007.11.18

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