Chung DU, Park JW deny allegations they took bribes for business favors


The rival parties are anxiously watching the development of a bank-lobbying scandal as prosecutors zero in on three high-profile politicians with the presidential election less than six months away.

Investigators plan to call in Lee Sang-deuk, President Lee Myung-bak’s elder brother and former lawmaker of the ruling Saenuri Party, on Tuesday on suspicion of taking hundreds of millions of won in kickbacks from two savings banks for business favors.

Prosecutors are also looking into the possible involvement of Saenuri Rep. Chung Doo-un and Rep. Park Jie-won, floor leader of the main opposition Democratic United Party. The two flatly deny the allegations.

“It is all a misunderstanding. I have already talked to those (who know that I did not receive it),” Chung told media. “Be careful given that such reports based on exaggerated speculation cause unrecoverable damage to the reputation of a politician.”

Park also denied his involvement in the scandal.

“I have never received any bribes in any case,” he told reporters. “It is a political ploy aimed at trampling me as a politician.”

Lee Sang-deuk is alleged to have received some 500 million won ($436,000) from Lim Suk, the chairman of the Solomon Savings Bank, and Kim Chan-kyong, chairman of Mirae Mutual Savings Bank, since late 2007, for helping prevent the banks from being suspended.

Lee, who served as the CEO of Kolon between 1979 and 1983, is also suspected of pocketing illegal political funding worth about 150 million won from Kolon.

Prosecutors suspect Chung received about 100 million won from Lim after introducing Lee to the Solomon chairman in 2007. Around the same period, Park is suspected of taking around 100 million from Lim for influence-peddling.

As the presidential election approaches, each party is striving to prevent any fallout from the scandal.

Observers said that the Saenuri faction loyal to Rep. Park Geun-hye, the presidential frontrunner, may try to distance itself from the incumbent administration as a series of the president’s associates were mired in corruption scandals.

The ruling party had tried to shake off its corrupt image after a set of scandals hit the party early this year. As part of reform efforts, it changed its party name and logo, which was followed by an upset victory in the April general elections.

Saenuri spokesman Rep. Kim Young-woo stressed that the prosecutorial probe should be fairly carried out in strict accordance with the law.

The DUP denounced the prosecution, saying that the investigation was politically motivated.

“Without any concrete evidence, the prosecution leaked (the suspicion) to the media only based on an individual’s statement,” said DUP spokesperson Rep. Jung Sung-ho.

A number of troubled savings banks have been suspended since last year due to capital shortages with some found to have illicitly lobbied influential politicians to prevent their suspension.

The financial authorities have inspected local savings banks to weed out unviable ones that failed to meet regulatory capital requirements.

By Song Sang-ho (sshluck@heraldcorp.com)