Rep. Rhee In-je Arrested

The Central Investigation Department of the Supreme Public Prosecutor’s Office (led by its chief, Ahn Dae-hee) arrested Rep. Rhee In-je of the tiny United Liberal Democrats party for whom the prosecution sought an arrest warrant for questioning on allegations of violating political funding laws on Monday. The prosecution sent investigators to Rhee, who had avoided warrant execution for 18 days, to take him into custody, and Rhee accepted arrest.

“I will exercise my right of statement refusal at the prosecution and reveal the truth in court,” he said to the press and party members right before his arrest. Rep. Rhee is suspected of receiving illegal funds equivalent to 250 million won out of 500 million won the Grand National Party offered him through Kim Yoon-su (now under arrest), his public relations secretary at that time in early December, 2002.

Regarding presidential campaign financing, the prosecution also decided not to book Hyundai Motor Chairman Chung Mong-koo, and indicted Kim Jong-jin, master vice-chairman for violating political funding laws and on charges of misappropriation from aggravated penalty law on specific economic crimes.

The prosecution made a provisional conclusion that 2 billion won was collected through Hyundai Croup affiliate Hyundai Capital, and that 8 billion won was the late honorary chairman Chung Ju-yung’s personal money, regarding the source of illegal funds equivalent to 10 billion won offered to the GNP by Hyundai Motor during the 2002 presidential election.

The prosecution decided to notify the National Tax Service that it should collect taxes on inheritances or donations from 8 billion won of the late Chung’s personal money.

In the meantime, the prosecution, almost finalizing its investigation into presidential campaign financing, is racking its brains whether or not to accuse president Roh Moo-hyun and former GNP leader Lee Hoi-chang. The prosecution announced Monday it would postpone expression of opinion on Lee. The background and the result for a second postponement are being paid attention to, with the prosecution having put off the announcement from May 13 to 17.

jin0619@donga.com