The Korea Herald

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Lee’s closest confidant admits he took money

By Korea Herald

Published : April 23, 2012 - 20:47

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The former chief of the country’s media regulator admitted on Monday to having received money from a business developer in the latest bribery scandal involving close confidants of President Lee Myung-bak.

The prosecution is said to be investigating the former chairman of the Korea Communications Commission Choi See-joong on suspicion of taking bribes in return for influence-peddling in a construction project.

But Choi, widely referred to as Lee’s political mentor, denied it was a bribe, saying the money was used for Lee’s 2007 presidential campaign.

The Central Investigation Department of the Supreme Prosecutors’ Office has evidence that the project’s developer, surnamed Lee, passed billions of won to a broker, also surnamed Lee, to be delivered to Choi, 75, in exchange for leveraging influence over the licensing of a large-scale retail and distribution complex in Yangjae-dong, Seoul, news reports said.

“I did receive (money) from (broker) Lee, who comes from the same hometown, from 2004 until recently. However, it is not related to the complex construction in question,” Choi was quoted as telling the Munhwa Ilbo.

Choi was president of Gallup Korea until 2007 before joining President Lee’s campaign.
Choi See-joong Choi See-joong

Choi’s implication follows a series of corruption scandals surrounding close aides and family members of President Lee Myung-bak, who has less than 10 months left in office.

Choi stepped down from his KCC post in January over allegations that his former aide accepted bribes from a businessman in exchange for favors.

Prosecutors reportedly acquired testimony from the developer who was heading the complex construction project at the time, that he handed over about 1 billion won to the broker between 2007 and 2008 to ask for Choi’s help in getting the project approved

Prosecutors are now looking into whether the money was actually delivered to Choi by the broker.

Choi is likely to be summoned for questioning, news reports said.

Prosecutors are also looking at the possible involvement of a powerful figure from the Lee Myung-bak government, according to the reports.

The Hankyoreh reported that Park Young-joon, former deputy prime minister, is also suspected of receiving money from the broker and that the entire bribery sum for the pair between December 2005 and May 2008 could amount to as much as 6.15 billion won.

The broker was arrested on Saturday for soliciting money for lobbying.

Prosecutors came upon his records of the alleged bribery while investigating another case of alleged embezzlement and corporate malpractice by the head of Himart, the home appliance retailer. The broker was in charge of some of the interior projects of Himart, news reports said.

The project, which began in 2002 on the former site of a 96,000 square meter-large cargo terminal in southern Seoul, claims it will end up being Korea’s largest integrated distribution complex encompassing malls, offices and logistics spaces.

But the project suffered cash flow problems and delayed construction, and eventually filed for court receivership in October last year. The Seoul Central District Court approved the complex’s workout plan two months later.

By Lee Joo-hee (jhl@heraldcorp.com)