South Korean Politics and Elections

Political Groups React Differently to Court Ruling on Lee’s Probe

Korea Times, January 10, 2008

The office of President Roh Moo-hyun and rival political parties said Thursday that they will respect the Constitutional Court's ruling in favor of an independent investigation into allegations of financial misconduct by President-elect Lee Myung-bak.

The Constitutional Court earlier in the day ruled that a law on the appointment of a special counsel on the Lee case conforms to the Constitution, except for one of its clauses that allows unwarranted summons of Lee and his relatives.

However, President-elect Lee and his transition team didn't respond. "Lee was briefed on the Constitutional Court's ruling, but didn't show any special response. We will not issue any official comment," Lee's spokesperson Joo Ho-yooung said.

Lee Dong-kwan, spokesperson of the transition team, also said it is not appropriate for his team to make an official comment on the issue, indirectly referring to the president-elect's decision in December to accept a special investigation into his behavior.

Some members of the transition team said on condition of anonymity that the Constitutional Court's ruling could provide an opportunity for Lee to completely dispel all suspicions surrounding him.

"A ruling outlawing the independent probe itself could rather have made us feel uncompensated. A complete elimination of all suspicions through the coming independent investigation will reinforce Lee's administrative power, while undermining the position of the UNDP and other proponents of the bill in the April general elections," said an official close to Lee.

President Roh's spokesperson Cheon Ho-seon said in his daily briefing that the presidential office Cheong Wa Dae will respect the ruling by the Constitutional Court.

"Cheong Wa Dae wants the independent investigation to proceed smoothly to help dispel public suspicion (about Lee's alleged involvement in various financial misdeeds)," said Cheon.

Lee's Grand National Party (GNP) and the pro-government United New Democratic Party (UNDP), which legislated the bill with minor liberal parties, both committed to accept the Constitutional Court's ruling.

"The ruling is regrettable, but we'll respect it. We hope the coming independent probe will again confirm the truth," GNP spokesperson Na Kyung-won said.

UNDP spokesman Lee Nak-yon also said his party will abide by the top court's decision despite different views over the ruling outlawing the unwarranted summons of Lee and his relatives.

The ruling followed President Roh's appointment Monday of former high-court judge Chung Ho-young as the independent counsel for the Lee case. Under the law, which was passed by the National Assembly and the Cabinet last month, Chung is to investigate allegations of financial irregularities by Lee until shortly before Lee's inauguration on Feb. 25. The special counsel is set to begin his formal activities next Monday.

Video Footage Threatens Presidential Front-Runner's March to Victory

Korea Times, December 17, 2007

Presidential front-runner Lee Myung-bak faced intense pressure to quit Monday after a video clip rekindled suspicion of his involvement in a 2001 financial scam. Rival candidates are pushing for an independent investigation into the case.

With voters set to go to the polls in just two days, it is unknown whether the video clip will reverse Lee's huge lead, based not on his ethics but on his experience as a CEO of the construction arm of Hyundai Group and his successes as mayor of Seoul.

Opinion surveys indicate that he will win a landslide victory, with over 40 percent of support. His rate of support is about 25 percentage points ahead of his closest challenger.

Political parties opposed to Lee of the main opposition Grand National Party (GNP) pushed to pass a bill for an independent investigation into his alleged crimes.

The bill, if passed in the National Assembly plenary session in the afternoon, may nullify the prosecutors' earlier exoneration of the top candidate.

"As of yesterday, the Grand National Party candidate Lee Myung-bak has become a criminal suspect no more, no less," Chung Dong-young, Lee's closest challenger from the pro-government United New Democratic Party, said in a party meeting. "He should take responsibility for what he's been saying and immediately withdraw his bid."

Lee's comfortable lead may have been tarnished by the footage that was released by the pro-government party Sunday. The footage appeared to show Lee saying that he "established an investment firm called the BBK in January 2000." The company was later allegedly used by his former business partner for stock manipulation and embezzlement. Lee has claimed that he had no relation with BBK.

After a month-long probe, prosecutors said on Dec. 5 that they found no evidence linking Lee to the stock manipulation.

Lee says that his remarks contained "some inaccurate expressions" while he was promoting a brand-new financial business.

"Still, I accepted (the bill for) the special probe. Because we have to change the politics that is marred by mudslinging, maneuvering and physical scuffles," he said in a pre-distributed television speech. A violent shoving match erupted in the National Assembly over the weekend as pro-government lawmakers sought to put the bill to a vote and GNP lawmakers occupied the Speaker's podium to block the legislation.

President Roh Moo-hyun issued a rare directive Sunday, ordering the Justice Ministry to consider instructing the prosecution to reopen the investigation, but the Justice Ministry decided not to convey the directive to prosecutors.

Lee's rivals intensified calls for his withdrawal.

"He had promised that if there's any problem with BBK, he would take responsibility even after his election. He should now apologize to the people and give up his candidacy," Lee Hoi-chang, a former GNP chairman now running as an independent, said in the televised debate.

The progressive minor opposition Democratic Labor Party backed the pro-government party's move to pass the bill, saying Lee Myung-bak's election "will be the beginning of national misery."

A simple majority is needed for the passage of the bill. The UNDP with 140 seats, is 10 seats short of the majority, and is seeking support from the nine-seat DLP and other minor parties.

The video clip came to light on Sunday morning after three men were arrested by police while trying to extort hush money from the GNP in return for withholding the clip. Lee said he "was asked for blackmail funds of 3 billion won ($3.3 million)" to acquire the tape before it was released. He said he immediately reported the incident to the police.

If the special investigation bill takes effect, Lee could be summoned to the prosecution even if he wins Wednesday's vote as the election law does not provide criminal amnesty to a president-elect.

It is uncertain, however, whether an independent counsel could complete the investigation before Feb. 25 when an incoming president takes office. If Lee is elected and takes office, he would enjoy immunity from criminal indictment except for rebellion charges.

(Yonhap)

Assembly Passes Bill Over Presidential Front-Runner

Korea Times, December 17, 2007

The National Assembly Monday approved a bill to reopen an investigation into the alleged links of presidential front-runner Lee Myung-bak to a 2001 financial fraud amid voters set to cast ballots in just two days.

Lee of the main opposition Grand National Party faced intense pressure to quit after a video clip suggesting his involvement in a massive financial scam was disclosed by a rival party on Sunday.

It remains to be seen whether the footage will reverse Lee's huge lead, based not on his ethics but on his experience as a CEO of the construction arm of Hyundai Group and his successes as mayor of Seoul.

Opinion surveys indicate that he will win a landslide victory, with over 40 percent of support, about 25 percentage points ahead of his closest challenger.

The assembly unanimously passed the bill that would launch a fresh investigation into allegations against Lee while nullifying the prosecution's earlier exoneration of the top candidate. All 160 lawmakers attending the plenary session, mostly from the pro-government party and minor opposition parties in the 299-member assembly, voted for the legislation while the GNP members boycotted the vote in protest.

"As of yesterday, the Grand National Party candidate Lee Myung-bak has become a criminal suspect no more, no less," Chung Dong-young, Lee's closest challenger from the pro-government United New Democratic Party, said in a party meeting. "He should take responsibility for what he's been saying and immediately withdraw his bid."

Lee's comfortable lead may have been tarnished by the footage that was released by the pro-government party Sunday. The footage appeared to show Lee saying that he "established an investment firm called the BBK in January 2000." The company was later
allegedly used by his former business partner for stock manipulation and embezzlement. Lee has claimed that he had no relation with BBK.

After a month-long probe, prosecutors said on Dec. 5 that they found no evidence linking Lee to the stock manipulation.

Lee says that his remarks contained "some inaccurate expressions" while he was promoting a brand-new financial business.

"Still, I accepted (the bill for) the special probe. Because we have to change the politics that is marred by mudslinging, maneuvering and physical scuffles," he said in a pre-distributed television speech. A violent shoving match erupted in the National Assembly over the weekend as pro-government lawmakers sought to put the bill to a vote and GNP lawmakers occupied the Speaker's podium to block the legislation.

President Roh Moo-hyun issued a rare directive Sunday, ordering the Justice Ministry to consider instructing the prosecution to reopen the investigation, but the Justice Ministry decided not to convey the directive to prosecutors.

Lee's rivals intensified calls for his withdrawal.

"He had promised that if there's any problem with BBK, he would take responsibility even after his election. He should now apologize to the people and give up his candidacy," Lee Hoi-chang, a former GNP chairman now running as an independent, said in the televised debate.

The progressive minor opposition Democratic Labor Party backed the pro-government party's move to pass the bill, saying Lee Myung-bak's election "will be the beginning of national misery."

The video clip came to light on Sunday morning after three men were arrested by police while trying to extort hush money from the GNP in return for withholding the clip. Lee said he "was asked for blackmail funds of 3 billion won ($3.3 million)" to acquire the tape before it was released. He said he immediately reported the incident to the police.

If the special investigation bill takes effect, Lee could be summoned to the prosecution even if he wins Wednesday's vote as the election law does not provide criminal amnesty to a
president-elect.

It is uncertain, however, whether an independent counsel could complete the investigation before Feb. 25 when an incoming presi