First lady submits statement to independent counsel

First lady Kim Yoon-ok

An independent counsel may bring criminal charges against seven or eight people, including President Lee Myung-bak’s son, for their involvement in a property scandal over a now-scrapped retirement home project for the president, according to sources Tuesday.

First lady Kim Yoon-ok turned in a statement over her alleged role in the scandal, in response to the counsel’s questionnaire.

Special Counsel Lee Kwang-bum will announce the results of a month-long investigation into the scandal today, two days after the President refused to extend the probe period.

Sources close to the counsel said that the investigation team was considering indicting seven or eight suspects for violating laws during the process of purchasing land in Naegok-dong, southern Seoul, for President Lee’s retirement residence.

Critics claim that the shady deal resulted in a loss to the state treasury.

The Presidential Security Service (PSS) and the President’s son, Si-hyung, bought the land for 5.4 billion won ($4.9 million). The PSS spent 4.28 billion won of taxpayers’ money and the rest was paid by the junior Lee.

The 34-year-old reportedly borrowed some 600 million won ($550,000) from his mother and almost the same amount from his uncle, Lee Sang-eun. First lady Kim ok allegedly provided her property as collateral to borrow the money from NongHyup Bank’s Cheong Wa Dae branch and loaned it to her son.

Those to be indicted are likely to include Lee Si-hyung, former presidential secretary for administrative affairs Kim Baik-joon and ex-PSS chief Kim In-jong who are suspected of breaking the real estate transaction law.

The sources said that some of the suspects may face charges of violating the gift law and the tax law.

They said that the team would indict the suspects without detention considering the nature of the scandal surrounding the first family.

Some critics, however, accused Cheong Wa Dae of trying to hinder the independent counsel from getting to the bottom of the case by blocking the team from raiding the PSS office to secure evidence that could uncover irregularities in the deal.

They also slammed President Lee for turning down the counsel’s request for an extension of the probe period, saying that the presidential office systematically prevented the team from conducting thorough investigations. <The Korea Times/Kim Bo-eun>