South Korean Assembly Passes Bill to Reopen Probe of Front-Runner Stock Scandal

Text of report in English by South Korean news agency Yonhap

[Yonhap headline: "Assembly Passes Bill To Reopen Financial Probe of Presidential Front-Runner"]

SEOUL, Dec. 17 (Yonhap) – The National Assembly Monday approved a bill to reopen an investigation into the alleged links of presidential front-runner Ri Myo’ng-pak [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 per cent 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 Ri Myo’ng- pak [Lee Myung-bak] has become a criminal suspect no more, no less,” Cho’ng Tong-yo’ng [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, manoeuvring 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 [Ro Mu-hyo'n] 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 [Lee Hoi- chang], a former GNP chairman now running as an independent, said in the televised debate.

The progressive minor opposition Democratic Labour Party backed the pro-government party’s move to pass the bill, saying Ri Myo’ng- pak [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 (US$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.

Originally published by Yonhap news agency, Seoul, in English 0639 17 Dec 07.

(c) 2007 BBC Monitoring Asia Pacific. Provided by ProQuest Information and Learning. All rights Reserved.