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Ex-President Lee ordered use of NIS funds, says aide

Jan. 24, 2018 - 18:20 By Kim So-hyun
Former President Lee Myung-bak’s second eldest brother Lee Sang-deuk was admitted to an intensive care unit at a hospital Wednesday, two days before he was due to appear before prosecutors for questioning, as the prosecution widens its probe into the former president and his family over alleged corruption and irregularities.

The veteran politician had been initially summoned to appear for questioning Wednesday over allegations that he accepted illicit funds from the National Intelligence Service in 2011. Lee, 83, had asked the prosecution to reschedule, citing health reasons.

Meanwhile, the man known as former President Lee’s “butler” reportedly told prosecutors that he received the state spy agency’s funds under Lee’s orders, recanting his earlier denial of the allegations.

Kim Paik-joon was arrested last week on charges of receiving more than 400 million won ($370,000) from the NIS in 2008 and 2010 while serving as the senior secretary for administrative affairs to then-President Lee.

Kim Paik-joon, a former aide to former President Lee Myung-bak, is taken to the Seoul Central District Prosecutors Office on Jan. 17, 2018, to be grilled over allegations that he illegally took funds from the state intelligence agency. (Yonhap)

Prosecutors reportedly obtained Kim’s testimony that he received the NIS’ off-the-books “special activities” funds under Lee’s orders and that Lee gave instructions on how to dispense it.

Kim claims that he never used the money personally. He earlier denied all charges.

However, former NIS chief Won Sei-hoon testified that Kim demanded the NIS provide its “special activities” funds as the presidential office lacked the money to cover souvenir costs.

Kim Joo-seong, a former senior NIS official who allegedly arranged the delivery of funds to Kim Paik-joon, told investigators earlier that he raised concerns about Cheong Wa Dae’s request for NIS money in a one-on-one meeting with Lee in 2008, but the requests for money continued after the meeting.

Lee and Kim Paik-joon have known each other for over 40 years since Kim joined Hyundai Group in 1976. Lee was president of Hyundai Engineering & Construction at the time. Kim has closely assisted Lee in his financial dealings since the late 1990s.

Meanwhile, prosecutors interrogated a nephew of Lee on Wednesday over his suspected role in amassing a slush fund at DAS, an auto parts maker run by his family.

Prosecutors suspect that Lee Dong-hyung, vice president of DAS, took part in creating and running a 12 billion-won secret fund for his uncle.

The son of Lee Sang-eun, the eldest brother of the former president, is the largest shareholder of IM, a partner firm of DAS, which the prosecution raided last week.

By Kim So-hyun (sophie@heraldcorp.com)