Prosecutors to summon DP chief over North Korean lobbying

Prosecutors plan to summon Democratic Party (DP) leader Lee Jae-myung on suspicion of being a party to bribery in relation to an underwear company’s illegal lobbying of North Korea.

Democratic Party leader Lee Jae-myung speaks at an event on universal basic income at Ewha Womans University in Seodaemun District, western Seoul, on Wednesday. [YONHAP]

Prosecutors on Wednesday summoned Democratic Party (DP) leader Lee Jae-myung on suspicion of being a party to bribery in relation to an underwear company’s illegal lobbying of North Korea.

This is the fifth time that Lee has been summoned by prosecutors, who are conducting various investigations of bribery cases involving Lee. He is expected to appear for questioning before the end of the week.

The charges against Lee were brought by the Suwon District Prosecutors’ Office, which is currently investigating allegations that Ssangbangwool (SBW) Group violated sanctions by sending $8 million to North Korea between January 2019 and January 2020 on behalf of the Gyeonggi provincial government, where Lee served as governor from 2018 to 2021.

The money was allegedly embezzled from the company’s coffers and carried in suitcases by employees to China, where it was delivered to North Korean agents in meetings with SBW’s former chairman, Kim Seong-tae, and Lee’s deputy governor at the time, Lee Hwa-young.

Prosecutors believe that $3 million was intended to convince North Korea to organize a visit by Lee Jae-myung to Pyongyang, while the remainder was to support Gyeonggi’s agricultural assistance program in North Korea.

The prosecution also believes Lee Hwa-young accepted illegal payments from the company on Lee Jae-myung’s behalf in return for guaranteeing the company’s involvement in potential future inter-Korean enterprises by the Gyeonggi government.

The former deputy governor, who was arrested on bribery charges in September last year, initially denied the DP leader’s involvement in the case, but later admitted to keeping him informed about SBW’s payments to the North.

He was also indicted in March for violating sanctions.

Kim was arrested in January while on the run in Thailand and is being prosecuted in the same case.

Ahn Bu-soo, who formerly served as chairman of the Asia-Pacific Exchange Association, has already been sentenced to three years and six months imprisonment in May for acting as a middleman between the Gyeonggi provincial government and SBW.

In its judgment against Ahn, the Suwon District Court accepted the prosecution’s argument that the money delivered to North Korean agents was used to lobby the regime to win future projects, including the opening of a famous Pyongyang restaurant, Okryukwan, in Gyeonggi.

Prosecutors applied the charge of third-party bribery against Lee Jae-myung because they believe both the alleged bribe from SBW to Lee Hwa-young and the company’s illegal payment to the North was primarily for his political benefit.

Under Article 130 of the criminal code, a public official can be charged with being party to bribery despite not directly receiving a bribe if they “cause, demand or promise” a bribe to another party after “accepting an unjust solicitation in connection with their duties.”

While questions remain as to why Lee Jae-myung would seek to arrange a visit to Pyongyang, he was notably not included in former President Moon Jae-in’s delegation to Pyongyang in September 2018, which was comprised of other DP bigwigs.

The DP chairman was indicted in two other corruption cases in March.

He faces charges of breach of duty, bribery and other counts related to the Daejang-dong development project in Seongnam, Gyeonggi, that took off during his tenure as the city’s mayor.

Prosecutors claim Lee contributed to some 489.5 billion won ($374 million) in financial damages to the Seongnam Development Corporation by approving the removal of a profit-sharing arrangement for the Daejang-dong project, enabling private contractors to pocket exponential profits.

Lee, who was mayor of Seongnam from 2010 to 2018, is also accused of indirectly taking donations from companies including Doosan E&C and Naver via the city’s football club, Seongnam FC.

The prosecution believes the companies paid 13.35 billion won in return for Lee relaxing development regulations.

He was also summoned by prosecutors just six days ago over allegations that he provided administrative favors to a private developer for a property project in Baekhyeon-dong, located in Seongnam’s affluent Bundang District.

BY MICHAEL LEE [lee.junhyuk@joongang.co.kr]