Tag: corruption

Korean Ruling Party Trying to Establish A Special Investigative Unit to Target Corruption

So does anyone think this bill is intended root out corruption or people that don’t agree with the politics of the Moon administration?:

Lawmakers of the main opposition Liberty Korea Party hold a rally at the National Assembly in Seoul on April 29, 2019, to oppose four other parties’ bid to fast-track key reform bills. (Yonhap)

he ruling Democratic Party (DP) decided Monday to fast-track two bills on establishing a special investigative unit tasked with probing allegations of corruption by high-ranking officials.
Earlier in the day, the minor opposition Bareunmirae Party (BP) proposed a separate bill on limiting the authority of the probe unit and fast-tracking both its bill and a relevant measure proposed by it and three other parties last week.
The National Assembly faces heightened tensions as the DP and three minor parties agreed last week to fast-track four bills linked to electoral reform and the establishment of a unit to investigate alleged corruption by high-ranking government and public officials. (………)

The BP bill calls for setting up a panel to review the appropriateness of charges filed by the probe unit, a tool aimed at preventing it from wielding excessive authority for indictment. Under the four parties’ deal, the unit will be able to indict only judges, prosecutors and high-ranking police officers, an institutional tool that can keep prosecutors in check.

Yonhap

You can read more at the link.

Investigation of Abuse of Power in the Environment Ministry Turns Towards the Blue House

It looks like the Korean left’s prosecution of a members of the prior Park Geun-hye government for running a “cultural blacklist” is coming back to haunt them as they have done an arguably worse abuse of power in the Environment Ministry:

Former Environment Minister Kim Eun-kyung appears at the Seoul Eastern District Court, Monday, for a hearing that will decide on her arrest on charge of abuse of power. / Yonhap

The prosecution is expanding its investigation into the environment ministry’s alleged “blacklist” to the presidential office as it is considering questioning a presidential secretary in charge of personnel affairs.

Since the main opposition Liberty Korea Party raised the allegation last December, prosecutors have confirmed some cases pertaining to a political purge. The ministry allegedly compelled 24 senior officials at its eight affiliated organizations appointed by the previous administration to step down so the posts could be filled with people loyal to the current government.

On Monday, the Seoul Eastern District Court held a hearing to decide whether to issue an arrest warrant for former Minister Kim Eun-kyung on charges of abuse of power after banning her from traveling abroad in February. Kim led the ministry from July 2017 to November 2018.

According to the prosecution, the environment ministry investigated some of the officials who were refusing to step down to uncover individual wrongdoings or business-related mistakes. Following such pressure, a standing auditor at the Korea Environment Corp. (KEC), surnamed Kim, quit in March last year.

Now, believing it is improbable that the ministry did not create the blacklist by itself, the prosecution has been looking into whether Cheong Wa Dae pulled the strings from behind the scenes.

Korea Times

You can read more at the link.

Former Presidential Aide to President Moon Convicted for Corruption, However Not Immediately Sent to Jail

Conservative journalists were thrown in jail for libel even though they reported true information, and a presidential aide is convicted of corruption and is sentenced to jail, and yet is able to walk around a free man:

Jun Byung-hun, an ex-presidential aide for political affairs and a former lawmaker, speaks to reporters at the Seoul Central District Court on Feb. 21, 2018.

A court on Thursday handed down a six-year prison term to a former senior secretary to President Moon Jae-in over a corruption case related to a gaming industry body, and one year in jail, suspended for two years, for abuse of power.
Jun Byung-hun, an ex-presidential aide for political affairs and a former lawmaker, has been suspected of forcing two home shopping channels — Lotte Home Shopping and GS Home Shopping — and telecom company KT to donate 550 million won (US$514,260) between 2014 and 2017 to the Korea e-Sports Association, over which he practically held control. But he was not taken into custody after the ruling. 
The Seoul Central Court also slapped him with a fine of 350 million won and an overdraft fee of 25 million won.
The court did not issue a warrant to arrest him as it judged that “it is appropriate for him to appeal to a higher court and solve the dispute (with the prosecution) without detention.”
“His criminal responsibility is grave,” the court said in its verdict, adding that Jun damaged the fairness and integrity of parliament by accepting bribes from companies related to his parliamentary activities.

Yonhap News

You can read more at the link.

“Meritorious Persons” from the Gwangju Uprising Receive Far More Compensation Than Korean War Veterans

Dr. Tara O over at the East Asia Research Center has another very interesting article published about how government compensation payments to “meritorious persons” from the Gwangju Uprising are so much higher than those given to Korean and Vietnam War veterans:

Youth march while holding sign:  “Cancel the 5.18 extra points for civil servant employment”

The Gwangju Incident that began on May 18, 1980 is referred to as “5.18” in Korea.  Those designated as 5.18 Yugogja (5.18 “Meritorious Persons”) and their families receive extensive benefits from the South Korean government.  Unlike Korean War and Vietnam War veterans, whose status is determined by the Ministry of Patriots and Veterans, the 5.18 Yugongja is determined in Gwangju.  While technically it falls under the Prime Minister’s office, de facto, the process and the decisions are made at the local government level.  However, it is the national government that pays the benefits.

East Asia Research Center

Below is an excerpt of a chart that shows the differences in compensation. Click the link to see the full chart:

Besides the extreme difference in compensation here is what makes this issue even more controversial is that the lists keeps growing. Plus politically connected people who were not even at Gwangju are now being selected as “meritorious persons” and getting the free cash and benefits:

For an event that occurred 39 years ago, it seems the number of 5.18 Yugongja should fall over time.  However, the number has been increasing, especially in recent years. In 1990, the first year the 5.18 Yugongja designation occurred, the number was 2,224.  As of August 2018, the number was 4,403.  In 2017, the number was 4,377, so it has increased by 26 in 8 months.  How is this possible?

It includes even those who were not present in Gwangju.  National Assemblyman Lee Hae-chan, the leader of the Deoburreo Minju Party, publicly admitted, “I became a Gwangju democracy Movement Yugongja, although I hadn’t even gone to Gwangju (then).” (0:30).  Lee Hae-chan was the former Prime Minister under Rho Moo-hyun and Education Minister under Kim Dae-jung. At least 30-40 other politicians are thought to be designated as 5.18 Yugongja.

This has caused conservative politicians to demand the release of the names of this growing list, but unlike the list of Korean and Vietnam War veterans this list is being kept secret. I think it is fair to say that certain people do not want the list released because it will show how it has become a way to reward politically connected people, thus why it keeps growing.

This “meritorious person” list reminds me of the National Medal of the Order of Merit for National Foundation where politically connected people are given generous stipends for this medal.

I am trying to think of an equivalent of politically connected corruption in the U.S. using a national medal of designation and I can’t think of one. The Presidential Medal of Freedom has long been given to politically connected people, but they are not getting huge payouts like in the ROK. Can anyone think of equivalent in the U.S. where politically connected people are getting huge payouts for an award or designation?

Prosecutors Recommend 20 Years in Jail for Former President Lee Myung-bak

20 years is the sentence the Moon administration prosecutors are recommending that former President Lee Myung-bak be given if convicted of the corruption allegations against him:

Former President Lee Myung-bak enters the Seoul Central District Court in southern Seoul to attend his corruption trial on Sept. 6, 2018. (Yonhap)

Prosecutors on Thursday requested that a Seoul court sentence former President Lee Myung-bak to 20 years in prison for corruption and other charges.

The demand was delivered to the three-judge panel at the Seoul Central District Court in Lee’s trial that began in early May. Prosecutors also called for a 15 billion-won (US$13.4 million) fine and a forfeiture of 11.1 billion won for the disgraced ex-leader.

The court’s ruling is scheduled for Oct. 5.

Lee, president from 2008-2013, was indicted in April on 16 counts of corruption ranging from bribery, abuse of power and embezzlement to other irregularities. He has been under presentencing detention since his arrest in late March.

Lee’s charges center on long-held suspicions, which dogged him throughout most of his political career, that he is the real owner of an auto parts company named DAS and used his presidential powers to benefit the company as well as himself and his family.

Part of the bribes also includes $5.85 million in lawsuit expenses Samsung Electronics Co. allegedly paid on behalf of DAS.

The former Seoul mayor is also accused of taking about 11.1 billion won in bribes from the state intelligence agency and a former head of a state-run banking firm. Prosecutors suspect he embezzled about 35 billion won from DAS and used it for personal purposes.  [Yonhap]

Here is Lee Myung-bak’s response to the charges:

In Thursday’s hearing, Lee vented anger over the charges and maintained his innocence.

“I cannot stand how the charges against me have caught me in the trap of such a stereotypical image that everything is linked to money,” he told the court. “It is so humiliating as a person who has lived his whole life loathing corruption and back-scratching and being so vigilant against such things.”

Lee again denied ownership of DAS and said he never accepted anything from a conglomerate or its chief, referring to Samsung Group Chairman Lee Kun-hee.

“I do not own a single share in DAS … and I feel saddened, beyond rage, that (they) prosecuted me for freeing Chairman Lee in exchange for the lawsuit fees,” he said.

“All I have is the house I live in.”

It has long been suspected that the charges brought against Lee were political retaliation for the corruption investigation brought against former President Roh Moo-hyun during President Lee’s time in office.  Roh ended up committing suicide because of the investigation.  The Chief of Staff for President Roh was current President Moon Jae-in:

His lawyer accused prosecutors of carrying out a far-fetched investigation and called for a wise judgment by the court.

The charges against Lee are punishable by up to life imprisonment.

The scandal tainted his long-established image of a self-made man who started off as a salaryman and rose to the top post at one of the country’s leading companies in only 11 years, before he entered politics in 1992.

Lee has insisted this trial is political retaliation by the office of President Moon Jae-in over the death of late President Roh Moo-hyun, Lee’s predecessor. Roh committed suicide in 2009 while under a prosecution investigation into a slew of corruption allegations.

Lee’s associates have claimed that Moon, a key Roh ally who served as Roh’s chief of staff, is trying to force the same humiliation back on Lee.

The 76-year-old is the fourth former president to face a criminal trial after ex-Presidents Chun Doo-hwan, Roh Tae-woo and Park Geun-hye. Park is serving a 25-year jail term for corruption, pending a top court decision.

It will be interesting to see how this turns out, but considering the influence that the ruling party can have over the courts I fully expect that Lee will be convicted giving the Korean left the payback they have long demanded against former President Lee.

Former ROK President Park Sentenced to An Additional 8 Years In Prison

The piling on of former President Park Geun-hye continues:

Former President Park Geun-hye arrives at the courthouse to attend her corruption trial in Seoul on Sept. 26, 2017, in this file photo. (Yonhap)

A Seoul court on Friday sentenced former President Park Geun-hye to eight years in prison for illegally taking off-book funds from the state spy agency and interfering in elections during her term in office.

Televised live, the Seoul Central District Court meted out the guilty verdict to the 66-year-old, who’s already serving a 24-year jail term on a string of corruption charges in a nation-rocking scandal that led to her ousting last year.

The court also ordered her to forfeit 3.3 billion won (US$2.91 million).  (…….)

She’s also been indicted for interfering in the then-ruling Saenuri Party’s candidate nominations for the 2016 general elections.

But the court on Friday acquitted her of the bribery charges, ruling that the NIS provisions of its funds to Park’s office were not paid in return for any favors.  [Yonhap]

So if the funds were provided by the NIS were not in return for favors then why were they providing them to former President Park?  Because they have been providing the funds to past ROK Presidents as well:

The court acknowledged that it has been customary for the spy agency to provide funds to the presidential office from its own state coffers, known as the untraceable special activities fund.

The fact that the then spy chiefs had delivered the funds to Park’s Cheong Wa Dae in a fixed amount, and on a regular basis, is far from the conventional way of paying someone a bribe, which usually comes in a lump sum payment at one time.  [Yonhap]

Basically what the NIS has been doing is giving the ROK President money to pay for things like cell phones and medical treatment that would not be subject to any government record keeping.  However, some of her expenses with this secret fund were definitely shady:

Park allegedly squandered the taxpayer money on maintaining her private house, financing a boutique where her secret confidante Choi Soon-sil — the central figure in the corruption scandal — had Park’s clothes made and other private purposes, including massage treatment.  [Japan Times]

I think the most significant thing about this ruling is that if Park was convicted of receiving money from the NIS, then former President Lee Myung-bak who has also been arrested for corruption will also get convicted for the same thing if he received NIS special activities funds.

What I am wondering is if the NIS was also making the payments to former President Roh Moo-hyun as well?  The opposition party in South Korea has already claimed that the Roh administration had their own special activities fund they wanted a special counsel to investigate.

The proposed investigation largely targets key figures from the former liberal Kim Dae-jung and Roh Moo-hyun administrations of 1998-2008. It also seeks to check whether the NIS and prosecution under the incumbent government have misused their funds.

“The misappropriation of special activity funds has long been a practice, so to speak, and it is one of Korea’s representative ills,” the request reads. “We demand institutional improvements be made by addressing the suspicions through a thorough investigation.” [Yonhap]

So far the Moon administration has not allowed any investigation into the prior Roh and Kim administration’s use of special activities funds.

Former President Roh committed suicide after the Lee Myung-bak administration began an investigation into him taking bribes.  There would be no legal implications if the NIS gave him money since he is deceased, but it would still be an interesting fact to know.  President Roh was hugely popular with the South Korean left and current President Moon Jae-in was his chief of staff at the time.  This is likely why the prior left wing administration will not be investigated.

This is also why the conservatives in South Korea consider the arrest and imprisonment of former Presidents Lee and Park as political payback for causing Roh’s suicide by exposing his corruption.

Picture of the Day: Choi Soon-sil Appears for Appeals Court Hearing

Choi Soon-sil attends hearing for appeals trial

Choi Soon-sil, the confidante of ousted President Park Geun-hye, arrives at the Seoul High Court on May 4, 2018, to attend a hearing for her appeals trial over a string of corruption charges that led to Park’s ouster. In February, the Seoul Central District Court sentenced Choi to 20 years in prison for abusing power for personal financial gain and other crimes. (Yonhap)

Former President Lee Myung-bak Indicted for Corruption

It was only a matter of time, but with the Park Geun-hye trial and sentencing out of the way, the Moon administration can next focus on Lee Myung-bak:

Former President Lee Myung-bak was indicted on bribery, embezzlement and other charges Monday, becoming the latest South Korean leader arrested or entangled in scandals at the close of their terms or after leaving office.

Lee’s indictment came three days after his successor Park Geun-hye was sentenced to 24 years in prison for a separate corruption scandal.

The Seoul Central District Prosecutors’ Office said in a statement that it charged Lee with taking a total of 11 billion won ($10 million) in bribes from the country’s spy agency, Samsung and others.  [Washington Post]

You can read more at the link, but he is likely going to jail as well.  Remember that Korea is not a rule of law society, but instead a rule by law.  This means those in power have enormous influence over legal proceedings.  The Korean left has long wanted to take down Lee Myung-bak because of the corruption investigation he initiated on former left wing President Roh Moo-hyun.  Roh ended up committing suicide after his corruption came to light under the investigation led by the Lee administration.

Former President Park Geun-hye Sentenced to 24 Years in Prison

Former President Park has received more time in prison than murderers and rapists in Korea:

People in Seoul Station watch the judge reading the verdict on former President Park Geun-hye on television, Friday. /Korea Times photo by Shim Hyun-chul

Former President Park Geun-hye was sentenced to 24 years in prison and 18 billion won in fine on Friday in a massive corruption scandal that toppled her from power early last year.

In a live televised trial, the Seoul Central District Court meted out the guilty verdict for the 66-year-old former leader, about a year after her arrest in late March of 2017.

Park was convicted of 16 counts of corruption, including bribery, coercion and abuse of power. Prosecutors had demanded a 30-year jail term.  [Yonhap]

Here is what the judge found her guilty of:

They include forcing conglomerates to contribute 77.4 billion won to two non-profit foundations Choi controlled; forcing Hyundai Motor Group to sign deals with Choi-controlled companies; forcing Lotte Group to pitch into Choi’s project to build a sports facility in return for a duty-free business license; forcing Posco to create a fencing team and have the Choi-controlled The Blue K take over its management; and forcing Samsung Group to fund some 1.6 billion won to a winter sports education center practically run by Choi as well as buy three horses for Choi, whose daughter Chung Yoo-ra is a dressage athlete.

“Park abused the power given to her by the people of the country and conspired with Choi to demand bribes from companies and meddle in their business decisions,” Kim said. “She abused her power as the president and received 14 billion won worth of bribes from Samsung and Lotte, and requested 8.9 billion won from SK Group.”

The court said Park received bribes worth 7.2 billion won from Samsung Group, though it cannot determine how much she kept for herself.

Park was also found guilty of abusing her power by blacklisting artists and cultural figures critical of her administration and exercising undue influence in the appointment of civil servants. She was found guilty of abusing her power as president to pressure former senior official of the Ministry of Culture, Sports and Tourism, Roh Tae-kang, to step down, after he pointed out problems concerning special treatment given to Choi’s daughter. The court judged Park had also pressured three officials in the ministry who did not cooperate on blacklisting artists to step down.  [Joong Ang Ilbo]

So she was convicted of taking bribes even though the prosecutors could not prove she received any bribes.  I have yet to see definitive evidence of how Park supposedly pressured these companies to donate Choi’s organizations.  Has anyone seen a definitive listing of the evidence that proves she told someone to donate money to Choi or else?

Interestingly this is what she was not convicted of:

However, the judge found Park not guilty of pressuring Samsung Electronics’ Vice Chairman Lee Jae-yong to financially help Choi’s equestrian daughter, Chung Yoo-ra.  [Korea Times]

So in the end all the drama of extraditing Chung Yoo-ra back to Korea was all about nothing.

Park’s lawyers will likely appeal the ruling.  I suspect that this sentence will be greatly reduced after the appeals process takes place, which is why I think this heavy sentencing is more for domestic political consumption.  ROK Heads may remember Samsung heir Lee Jae-yong received a five year sentence for corruption and then was quietly released on appeal a few months later.  I don’t think Park will be released in a few months, but I doubt she will do 24 years in prison considering rapists and murderers don’t spend that much time in Korean jails.