Latest, yet most prominent
member of Lee’s inner circle involved in corruption
The prosecutors investigating the savings bank corruption scandal announced on Thursday that they will summon Lee Sang-deuk, President Lee Myung-bak’s elder brother and the most influential figure of the current administration, on July 3.
Although Lee will be summoned as a witness, observers speculate that the prosecutors are likely to have found evidence linking Lee to criminal activities in order to make the decision.
Lee is to be questioned over allegations that he received bribes from Lim Suk, the chairman of the Solomon Financial Group, in return for using his influence to prevent Solomon Savings Bank from being suspended. He will also be questioned over allegations that he received illegal political funding of 150 million won ($131,000) from Kolon Group. Lee, like his younger brother, started his career in the private sector and served as the CEO of Kolon between 1979 and 1983.
Although the summon was issued in relation to the Solomon Savings Bank case, Lee has been implicated in a series of corruption scandals since early last year.
In May, reports emerged of Lee using his influence to pressure Pohang University of Science and Technology to invest 50 billion won in Busan Savings Bank in 2010. The savings bank was suspended by the Financial Services Commission early last year, incurring heavy losses for the university. Lee denied the allegations, saying that he did not have any acquaintances connected to the savings bank.
However, the Busan Savings Bank case was to be only the first in a series of scandals in which Lee’s name came up.
In September, he was implicated in the SLS Group scandal, where the group’s chairman was found to have bribed government officials to save his company.
At the time SLS Group chairman Lee Kuk-chul said that he gave 3 billion won and one of the group’s subsidiaries to “influential figures” to save his group. The “influential figures” turned out to be Lee’s former aide Park Bae-soo and a close associate Moon Hwan-chul, who have both been indicted.
Although speculations that the two were acting on behalf of Lee arose, the investigation did not reveal links to the former lawmaker.
The investigators, however, did find that 1 billion won had been transferred in and out of accounts held by two of Lee’s secretaries. Of the 1 billion won, 700 million won was found to belong to Lee.
Lee’s explanation was that the money was part of cash he kept at his home for more than 20 years, and that he transferred funds to his secretaries to be used in running his office.
The authorities also suspect the former lawmaker of having been involved in the case where his aid Park Bae-soo took a large bribe in return for influencing Korea Hydro and Nuclear Power Co.’s human resource management.
For the Lee Myung-bak administration, the summoning of the elder Lee marks an almost complete downfall of its most powerful figures.
While the elder Lee remains a witness the prosecutors have left open the possibility that that status could change.
“Former lawmaker Lee Sang-deuk is summoned as a witness, but his status could be changed to that of a suspect during questioning,” an official with the prosecutors’ office was quoted as saying in the local media.
As a six-time lawmaker and the president’s elder brother, Lee Sang-deuk is widely considered to be the most influential figure of the current administration and the central figure of the so-called “Yeongpo line,” a group of the president’s closest allies.
The elder Lee was considered to wield such significant influence within the current government as to give rise to a phrase meaning “all things are connected to the elder brother.”
Lee’s being put in a precarious position follows the downfall of the high and mighty of the Lee Myung-bak administration.
Former Korea Communications Commission Chairman Choi See-joong, the president’s political mentor, is under arrest for allegedly taking bribes from the developer of the shopping mall Picity, while former National Assembly speaker Park Hee-tae has been given a two-year suspended sentence for buying votes in the party leadership race in 2008.
Former Vice Minister of Knowledge Economy Park Young-joon has also been indicted for his involvement in the Picity case.
By Choi He-suk (cheesuk@heraldm.com)
The prosecutors investigating the savings bank corruption scandal announced on Thursday that they will summon Lee Sang-deuk, President Lee Myung-bak’s elder brother and the most influential figure of the current administration, on July 3.
Although Lee will be summoned as a witness, observers speculate that the prosecutors are likely to have found evidence linking Lee to criminal activities in order to make the decision.
Lee is to be questioned over allegations that he received bribes from Lim Suk, the chairman of the Solomon Financial Group, in return for using his influence to prevent Solomon Savings Bank from being suspended. He will also be questioned over allegations that he received illegal political funding of 150 million won ($131,000) from Kolon Group. Lee, like his younger brother, started his career in the private sector and served as the CEO of Kolon between 1979 and 1983.
Although the summon was issued in relation to the Solomon Savings Bank case, Lee has been implicated in a series of corruption scandals since early last year.
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| Lee Sang-deuk |
In May, reports emerged of Lee using his influence to pressure Pohang University of Science and Technology to invest 50 billion won in Busan Savings Bank in 2010. The savings bank was suspended by the Financial Services Commission early last year, incurring heavy losses for the university. Lee denied the allegations, saying that he did not have any acquaintances connected to the savings bank.
However, the Busan Savings Bank case was to be only the first in a series of scandals in which Lee’s name came up.
In September, he was implicated in the SLS Group scandal, where the group’s chairman was found to have bribed government officials to save his company.
At the time SLS Group chairman Lee Kuk-chul said that he gave 3 billion won and one of the group’s subsidiaries to “influential figures” to save his group. The “influential figures” turned out to be Lee’s former aide Park Bae-soo and a close associate Moon Hwan-chul, who have both been indicted.
Although speculations that the two were acting on behalf of Lee arose, the investigation did not reveal links to the former lawmaker.
The investigators, however, did find that 1 billion won had been transferred in and out of accounts held by two of Lee’s secretaries. Of the 1 billion won, 700 million won was found to belong to Lee.
Lee’s explanation was that the money was part of cash he kept at his home for more than 20 years, and that he transferred funds to his secretaries to be used in running his office.
The authorities also suspect the former lawmaker of having been involved in the case where his aid Park Bae-soo took a large bribe in return for influencing Korea Hydro and Nuclear Power Co.’s human resource management.
For the Lee Myung-bak administration, the summoning of the elder Lee marks an almost complete downfall of its most powerful figures.
While the elder Lee remains a witness the prosecutors have left open the possibility that that status could change.
“Former lawmaker Lee Sang-deuk is summoned as a witness, but his status could be changed to that of a suspect during questioning,” an official with the prosecutors’ office was quoted as saying in the local media.
As a six-time lawmaker and the president’s elder brother, Lee Sang-deuk is widely considered to be the most influential figure of the current administration and the central figure of the so-called “Yeongpo line,” a group of the president’s closest allies.
The elder Lee was considered to wield such significant influence within the current government as to give rise to a phrase meaning “all things are connected to the elder brother.”
Lee’s being put in a precarious position follows the downfall of the high and mighty of the Lee Myung-bak administration.
Former Korea Communications Commission Chairman Choi See-joong, the president’s political mentor, is under arrest for allegedly taking bribes from the developer of the shopping mall Picity, while former National Assembly speaker Park Hee-tae has been given a two-year suspended sentence for buying votes in the party leadership race in 2008.
Former Vice Minister of Knowledge Economy Park Young-joon has also been indicted for his involvement in the Picity case.
By Choi He-suk (cheesuk@heraldm.com)
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