The prosecution’s investigation into suspicions surrounding late President Roh Moo-hyun’s daughter’s alleged attempt to purchase a high-end apartment in the U.S. resumed as a key witness was summoned to testify.

The questioning is expected to facilitate probes into family members of the deceased president, whose case was closed after his death on May 23, 2009.
Officials at the Supreme Prosecutors’ Office said Wednesday that Kyung Yeon-hee, who attempted to sell her Hudson Club complex apartment in New Jersey to Roh Jeong-yeon, the late president’s daughter, presented herself for questioning on Monday and Tuesday.

Kyung is suspected of having received 1.3 billion won ($1 million at that time) from Roh in January 2009 through a third party. The transfer of the money is believed to be illicit, a violation of the Foreign Exchange Control Law. Prosecutors also believe it was laundered several times.

During a 2009 investigation, the prosecutors confirmed that Roh Jeong-yeon transferred $450,000 to Kyung as an initial payment on a deal to buy the apartment for $1.6 million. However, the contract was voided because she failed to pay the remainder, they said.

Investigators expect that Kyung’s testimony will help them work out the source of the money.

The $450,000 Roh paid is thought to be part of $1 million Chung Sang-moon, a close aide of Roh Moo-hyun, received from Park Yeon-cha, a Busan-based shoemaker and one of Roh’s wealthiest sponsors. Some local media reported that the $1 million could be an additional kickback from Park or another sponsor of the late President.

The investigation was relaunched when Don Lee, a manager of a U.S. casino; his brother James Lee; and a foreign car dealer revealed that they had delivered the $1 million in cash to Kyung on behalf of Roh Jeong-yeon.

The prosecutors said that Kyung has admitted to having received boxes with $1 million, and that she transferred it through a broker. The investigators are planning to ask Kyung where the money came from. If Kyung says it was Roh Jeong-yeon, the prosecutors said they will consider summoning her, too.

Investigators hope that questioning Kyung could open a new chapter in the examination of the alleged illegalities of Roh Moo-hyun’s family.

Roh Geon-pyeong, the older brother of the former president, was indicted without detention last Friday for receiving kickbacks from a land developer in exchange for linking him and local administrators. He is also accused of misappropriating a company fund belonging to his friend. The late president’s brother was convicted of bribery in 2008 and released in August 2010.

Prosecutors also suspect there could be more sponsors of the deceased president that have been providing financial help to his family.

By Bae Ji-sook (baejisook@heraldcorp.com)