[Editorial] Was the loan scandal a mere case of swindling?

The prosecution authorities reportedly came to a tentative conclusion after their investigations into Hanvit Bank`s unlawful loan scandal that it was a simple case of swindling. According to the prosecutors, there was no external pressure for the loan.

They concluded that it was a mere case of swindling conspired by Shin Chang-Seop, Hanvit Bank`s Gwanak branch manager together with Park Hoe-Ryong, a medium-sized business owner who bragged about the fact that he is a nephew to Minister of Culture and Tourism Park Jie-Won.

But there are many suspicious aspects which make it hard for us to accept the prosecutors` findings. They must thoroughly be investigated and disclosed. Without such full investigations, any hasty conclusion of a mere money swindling case will have a snowball effect on the public`s distrust and suspicions which will in turn backlash to burden the prosecutors and the ruling powers. This is the reason why the case must be most rigorously probed, even if that would take a considerable amount of time. Certainly, this is not a matter we can hurriedly round up or hush up to bring it to a conclusion.

What has been disclosed so far makes it hard for us to believe that Hanvit Bank was simply deceived by Park`s treachery and deceptions. Shin stated that he made loans to Park after he received three phone calls from Lee Soo-Kil, Deputy Governor of Hanvit Bank, for Park`s loan arrangement.

It is also confirmed that Minister Park had three telephone conversations with Deputy Governor Lee. Although they explained that the conversations had nothing to do with the loan, there is more than ample ground to have such suspicions in view of Minister Park`s close relationship with Deputy Governor Lee as to ask for an extension of the contract for the bank`s employee as well

as the nomination of an outside bank director.

What is also improper was the fact that Lee personally met businessman Park last month when the bank`s special audit and inspections were conducted over at the Gwanak branch. Lee told the prosecutors that he couldn`t help meeting Park because of his almost entreating calls, emphasizing that he is a nephew to Minister Park. Yet, it can hardly be considered as proper for the bank`s deputy governor to meet such defaulting customers like Park, especially during the branch`s auditing period.

It is therefore natural to suspect that Lee might have acted as a bridge to connect the external pressure with the loan arrangement. Nor is it comprehensible at all that a branch manager with no consultations with his head office can loan by his own discretion such huge sums amounting to tens of billion won.

Prosecutors must show firm determination to thoroughly investigate Minister Park`s alleged involvement as well as the suspected ¡°Sajik-dong¡± Presidential police task force`s retaliatory probe against the Trust Guarantee Funds (TGF) to exert pressures for the loan guarantee. They should not delay the probe until the arrest of Lee Un-Young, the TGF`s branch manager is realized. Hanvit`s loan scandal and the TGF retaliatory probe are inseparably intertwined with the alleged external pressures over the loan.

Prosecutors must precisely investigate, in particular, the external pressures in question as to leave no stone unturned. That will set the nation upright and save its prosecutors.