Lee refutes allegations of shady land deals




Grand National Party presidential frontrunner Lee Myung-bak yesterday denied suspicions surrounding his wealth and financial deals during a party hearing.
Devoid of grueling questions and often lackluster, the first candidate verification hearing by a political party was criticized by the Uri Party for serving only to give opportunities for the presidential aspirants to defend themselves.

Allegations about Lee's wealth and real estate holdings have become the main topic in the heated nomination race between Lee and Park Geun-hye who currently rank first and second at public polls.

Lee's trademark campaign pledge of building a cross-peninsula canal and other economic policies were overshadowed by new allegations of his and his relatives' wealth.


"As CEO of Korea's largest construction company, why would I have felt the need to make money through secret real estate deals? I never even had the free time," he said answering questions from the 15-member panel of the candidate verification committee.

Lee served as CEO of Hyundai Engineering and Construction for over two decades.

He stood before the panel in the afternoon after his rival Park was inquired in the morning session.

"I stand here today with the historical duty to achieve the change of government," said Lee. "I was often angry about the endless suspicions surrounding me and my family members. I promise to frankly answer what I know and lead the establishment of a new Korea."

Interrogation focused on auto accessories provider DAS -- owned by his brother and brother-in-law -- which has been at the center of the fracas as attackers claim the company's actual owner is Lee.

The panel raised the matter of ownership, questioning why Lee's brother-in-law, the largest shareholder of the company, received his dividends only twice; and why the bank accounts of his brother and brother-in-law were opened together at the same lender in Seocho-dong, southern Seoul.

The panel also questioned Lee about a lucrative plot of land in Dogok-dong, southern Seoul, registered to his brother and brother-in-law. Lee is claimed to be the real owner of the properry. The 5,000-square-meter plot of land was sold to POSCO Engineering & Construction Co., Ltd. in 2005 in a deal from which the seller allegedly made over 25 billion won.

Lee flatly denied the allegations.

"These two are wealthy enough people. Such groundless accusations are victimizing the people who purchased the land legally and justly," he said.

The panel also questioned Lee about Hongeun Planning Co., Ltd., a 100 percent owned subsidiary of DAS.

Hongeun Planning purchased about 2,400 square meters of land in Gangdong about eight months after Lee became Seoul mayor. After the land was selected as a new town district, the company began to construct apartment complexes and raked in potential profits of over 15 billion ($16 million) won.

Lee defended himself against suspicions that he exercised influence to include Seoul's Gangdong district as the site for new housing development plan in 2003 after Hongeun Planning bought the land, arguing he did not even know about the company's existence until recently. Lee served as Seoul mayor between 2002 and 2006.

Lee was also grilled on suspicions of dodging mandatory military service. Lee reaffirmed that such allegations are groundless and that ghe was exempted from the service due to bronchiectasis and pulmonary tuberculosis.

Yesterday's session was the first candidate evaluation hearing by a political party in the nation to examine the main candidates Lee and Park before the GNP's primary vote scheduled for Aug. 19.

The verification committee came under criticism from the pro-government camp for handing over the questionnaire to the two presidential hopefuls a day before the session and for excluding the three presidential underdogs of the party.

"I don't see the point of the hearing if potential candidates are given time to make up excuses for all their wrongdoings," said Uri Party floor leader Chang Young-dal yesterday. "We hope that the GNP isn't trying to give its candidates indulgence before the elections."

By Shin Hae-in

(hayney@heraldm.com)




2007.07.20


credit- Shin Hae-in, The Korea Harold