The leader of the conservative Bareun Party became mired in allegations of illegal funding Thursday, following reports that cited an unnamed businessman.

According to reports, Rep. Lee Hye-hoon received 60 million won ($53,000) and a number of designer brand items from the businessman in the run-up to last year’s general election. The businessman also claimed that Lee promised him favors once the elections were over. 

Lee, who is in her third parliamentary term, refuted the allegations and is taking legal action against the accuser.

Lee said she came to know the businessman through a senior member of the pro-Park Geun-hye faction and that she had borrowed money from the man, but repaid him in full a few months ago.

Lee also claimed that the man in question appears to have approached her with hidden intentions and that she severed ties with him when he began making inappropriate requests.

“I have repaid (loans from the businessman) and I assure you that there were no favors involved,” Lee said at a press conference.

“I have fully repaid him a long time ago. There were unfair demands that could not be accepted. He asked to borrow money, and asked me to funnel funds for him.”

Lee has since revealed that the man in question had been involved in at least one fraud case as well as two suits against Lotte Group Chairman Shin Dong-bin and a university professor.

In the law suits, filed in 2011, the businessman accused Shin and the university professor of having been entertained by him at adult establishments and of promising to support his plans to host an international film festival. The man also alleged that the professor and a Cheong Wa Dae security official threatened him in 2010.


By Choi He-suk (cheesuk@heraldcorp.com)