Demands parliamentary probe into corruption allegations against both ruling and opposition figures


The ruling Saenuri Party reversed its position and called for a parliamentary hearing on a savings bank scandal involving big-name politicians in both the ruling and opposition parties including the elder brother of President Lee Myung-bak.

“I believe that the parliamentary state affairs committee should hold an open hearing (on the savings bank bribery scandal),” said floor leader Rep. Lee Hahn-koo in a radio interview on Tuesday.

“A parliamentary probe is also to be introduced, if necessary.”

This was the first time that the ruling party leadership demanded a parliamentary probe into the bribery allegations.

The about-face is seen as a counterattack against the opposition camp as it was suggested recently that the main opposition Democratic United Party’s floor leader Rep. Park Jie-won, too, was involved in the case.

Lee Sang-deuk, President Lee Myung-bak’s elder brother and former ruling party lawmaker, was questioned Tuesday on charges of taking more than 700 million won ($599,000) from savings banks owners.

Allegations emerged last week that industry executives illegally lobbied the main opposition Democratic United Party’s floor leader Rep. Park Jie-won.

“The scandal was triggered by corruption accumulated since the former administration,” Lee said, referring to the former liberal Roh Moo-hyun administration and the then-ruling DUP.

He called for a thorough probe on controversial real estate project financing schemes, which involved a series of borrowed-named loans and embezzlement.

The DUP earlier requested a state probe into allegations that Park Ji-man ― younger brother of Rep. Park Geun-hye ― was involved in the savings banks lobbying, but the Saenuri camp rejected the idea.

“Park Ji-man and his wife were both mixed up with the Samhwa Savings Bank case,” said the DUP’s Rep. Park last month.

The DUP’s Park, however, is also suspected of taking kickbacks from the corrupt financial agencies.

The Supreme Prosecutors’ Office recently said that it will expand its probe to Rep. Park and the Saenuri’s Rep. Chung Doo-un, based on the testimony of Mirae Mutual Savings Bank chairman Kim Chan-kyong, according to officials.

Though both Park and Chung flatly denied the allegations, the prosecution’s move shed new light upon the scandal, placing the DUP on the defensive.

Ever since some of the major local savings banks were suspended last year, the related scandal has been a major source of dispute between the parties.

Earlier this year, authorities widened their probe as four of the savings banks turned out to have sustained huge losses from high-risk investments.

Also, two chiefs allegedly embezzled astronomical amounts from deposits and used them for personal interest and for illicit lobbying.

By Bae Hyun-jung (tellme@heraldcorp.com)