Special Investigation Team Raids Home of Lee Kwang-jae

An independent investigation team led by Kim Jin-heung raided the home of Kim Kwang-jae, the President’s former secretary of state affairs, on January 13. The raid was in connection with the ongoing investigation into the alleged corruption of aides close to the President.

The team, made up of four investigators, entered the residence early in the day and confiscated a number of documents and memos that are currently being closely analyzed. The team is also running a funds trace on the accounts of Moon Byung-wook, the president of Sun & Moon Group.

“We have executed a necessary search and seizure during this investigation process; it does not mean that the previous investigation was lenient,” said Deputy Special Counsel Lee Woo-seung. “The same applies to the account trace in the Sun & Moon case.”

The investigation has revealed that Lee received ten 10 million won checks from Sun & Moon president Moon when they met at a hotel in Gangnam, Seoul with an executive named Kim from K Bank, a graduate of Busan Commercial High School, before the 2002 presidential election.

The independent counsel team’s investigation has focused on Kim, who allegedly introduced president Moon to Lee and who also may have been involved in the laundering 100 million won in cash. The team is also investigating whether or not he was involved in other illegal fund-raising and money-laundering schemes.

The team has also sent professional financial tracing investigators to Chengju, Chungbuk regarding the alleged corruption of Yang Kil-seung, former manager of the first attachment to the president. They will investigate Lee Won-ho, the real owner of Cheongju’s K night club and the person who provided entertainment Yang. They will also trace other related accounts.

The team has discovered that Lee withdrew 5 billion won in October and November of 2002, and is tracing his finances with documents provided by his primary bank.

“We have sent investigators to Cheongju, and they will stay there for the time being,” said Deputy Counsel Lee.

Additionally, investigators have put a departure ban on 10 people so far concerning the investigation by adding 3 or 4 people on the list.

leon@donga.com tesomiom@donga.com