First lady may face special investigations

Kim Yoon-ok

A special probe into the first family over a “shady deal” for property for their retirement home is reaching first lady Kim Yoon-ok at a critical juncture ahead of the Dec. 19 presidential election.

According to officials of a team led by special prosecutor Lee Kwang-bum, a former judge, the latest development in the case under consideration is whether to summon Kim over money she had allegedly “loaned” to her only son, Lee Si-hyung.

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, to buy the land for his father’s retirement residence last year, together with the Presidential Security Service (PSS).

President Lee Myung-bak’s eldest brother was also questioned.

Now, Lee’s team is weighing how to interrogate the 65-year-old Kim. Presidential aides claim that, if necessary, the first lady should be questioned in a written form given her status, while some opposition lawmakers say she should be called in to the counsel’s office like other figures involved in the deal.

The prosecutors may choose to visit the presidential office for questioning, or meet her in a difference place. The office said it will decide on the form of questioning soon.

Last week, Lee Si-hyung and Lee Sang-eun were questioned at the counsel’s office about the deal. Investigators also raided the Seoul office of DAS, an automobile seat maker owned by Lee Sang-eun, and seized computers and financial documents. Lee Si-hyung is an executive of DAS.

The special counsel also grilled Kim Paik-joon, a former presidential secretary for administrative affairs, on Saturday over his alleged involvement in the deal.

As he entered the counsel’s office, the former presidential aide told reporters that the PSS paid a commission fee worth 11 million won ($10,000) on behalf of Lee Si-hyung to a realtor who brokered the property deal.

After the questioning, however, the former secretary reversed his earlier statement, saying the PSS has never paid a commission fee on behalf of the junior Lee.

The first lady is known to have provided her property as collateral to borrow some 600 million won from NongHyup Bank’s Cheong Wa Dae branch and loaned the money to her son.

Lee Si-hyung purchased the land in Naegok-dong in southern Seoul for a retirement home for his father in May last year jointly with the PSS. They 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 Lee Si-hyung. Critics say the deal resulted in a loss to the country’s treasury, and a violation of the property transaction law that bans transactions under false names.

Cheong Wa Dae cancelled the retirement residence project and sacked then-PSS chief Kim In-jong after the scandal erupted.

Depending on the outcome of the investigation, not just the reputation of President Lee but also, possibly by extension, the campaign of the ruling Saenuri Party’s presidential candidate Park Geun-hye could suffer bad repercussions.

Park is neck and neck with two rivals for the December poll _ independent candidate Ahn Cheol-soo and Moon Jae-in of the main opposition Democratic United Party. So far, Park has tried to distance herself from the President but it can’t be ruled out that it will negatively affect Park’s campaign, if there is found to be a major breach of law. <The Korea Times/Na Jeong-ju>