Main opposition frets over inquiry into ex-president's associates

SEOUL, Nov. 25 (Yonhap) -- A mounting corruption investigation into a now-defunct securities company had the main opposition party in jitters Tuesday, as the probe moved closer to associates of former President Roh Moo-hyun, including his elder brother.

Prosecutors have been investigating Sejong Securities Co. for some time now, but
the case only recently began to make headlines after it became clear it involved
aides to Roh.
Sejong was acquired by Nonghyup, the National Agricultural Cooperative
Federation, in January 2006.
Allegations have been escalating that bribes were offered to ranking officials of
the former government in return for confidential information as businessmen,
including Roh's long-time political sponsor Park Yeon-cha, pocketed capital gains
as the firm's shares soared ten-fold around the takeover period.
Among those who allegedly pocketed illegal money in return for insider
information and influence-peddling is Roh Gun-pyeong, the former president's
brother.
This is not the first time the elder Roh has been implicated in such a scandal,
though he was extricated in all past cases. Prosecutors imposed an overseas
travel ban on him Monday.
The former president has not commented on the case.
The main opposition Democratic Party (DP), many of whose members are still loyal
to former liberal Presidents Roh and Kim Dae-jung, has been largely keeping mum
on the case.
"This is hardly an issue we can comment on, especially when the former president
is also staying quiet," a DP lawmaker told Yonhap on the condition of anonymity.
"Many are just observing the investigations nervously."
Some of the ex-president's closest confidants are raising doubts as whether the
ongoing probe is politically neutral, especially after a ranking DP official was
arrested Monday, ending weeks of protest against what he called a "witch hunt."
"There have been cases in the past involving (Roh's) elder brother, but nothing
big came out, did it?" Ahn Hee-jung, member of the DP's decision-making supreme
council said. "If there is no truth in this investigation, there will be
trouble."
Lawmakers on the other side of the issue see that argument as evasive.
"The main opposition is charging every investigation is politically motivated,"
said Park Hee-tae, leader of the ruling Grand National Party, spurning doubts
about the fairness of the probe. "It's quite simple: Those with questionable
deeds shall be inquired of."
In the probe's most recent development, two businessmen were arrested Monday on
charges of receiving up to 3 billion won (US$1.99 million) in bribes for
mediating an illicit deal concerning the sale of Sejong Securities.
The two, Jeong Dae-geun and Jeong Hwa-sam, who also went to the same high school
as former President Roh, allegedly said they contacted Roh's older brother to
peddle influence in return for more money, prosecutors said.
"A phone call itself is not subject to criminal punishment," an official of the
Supreme Prosecutors' Office said. "Nothing has been specified about (the elder)
Roh's wrongdoing so far."
Last week, Park Yeon-cha, chairman of Taekwang IND. Co., admitted via a media
interview that he evaded taxes by trading shares under false names, but denied
using insider information allegedly obtained by aides to then President Roh.
Park is believed to have pocketed more than 10 billion won through transactions
to accounts under borrowed names, prosecutors believe. He is expected to be
summoned soon.
Park was also fined in 2004 for offering 700 million won in illegal funds to Ahn,
Roh's aide, raising further suspicions about the former government.
The ex-president's private residence in Bongha, South Gyeongsang Province, was
also partly funded by an aide to Park.
hayney@yna.co.kr
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