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Presidential Front-runner Caught Up in Financial Scandal

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공표년도

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2007-11-17

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A financial fraud case seems to be potentially dealing a blow to the country's presidential front-runner Lee Myungbak ahead of the December election.
Arirang's Kang Chery looks at the allegations and how this scandal is troubling domestic politics.
The most sought-after man for some Korean politicians though certainly not all flew into Seoul from Los Angeles on Friday.
With the race to the nation's top office only a month away accused stock fraudster Kim Kyungjun has returned and possibly with some awkward information for the Grand National Party's presidential frontrunner‚ Lee Myungbak.
With Lee Kim built an asset management firm called BBK in 1999‚ and a year later he started another financial company in which Lee invested.
In 2001‚ Kim allegedly inflated BBK's share prices by spreading false rumors of a merger with a foreign firm‚ costing shareholders about 65.6 million dollars.
He is then accused of embezzling 38 billion won before fleeing to the U.S. on a forged passport in December 2001.
Taken immediately to the prosecution office in Seoul upon his return‚ Kim has been questioned for long hours about the accusations with an arrest warrant possibly on the way.
Lee has a long-running lead in the polls‚ but a victory for him in the December 19 election hinges on what information comes out of this investigation.
Lee's opponents including the liberal United New Democratic Party are busily highlighting his links to the scandal.
With Lee's popularity ratings hovering around 40 percent the conservative GNP maintains that Kim is the sole perpetrator of the alleged fraud.
A recent opinion poll sponsored by a group of newspapers showed that Lee is likely to lose 25 percent of his supporters if he is found to be involved in the alleged scam.
Kang Chery‚ Arirang News. Reporter : cherykang@arirang.co.kr

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