Signs of Political-Prosecutor Conflict Reemerging
Analyzing Decisive Recording of 'Regime Collusion'
Prosecutors' Investigation Approaches Cheongwadae Entrance
[Asia Economy Reporter Kim Hyung-min] The 'government-prosecution (政ㆍ檢) conflict,' which had briefly subsided amid the spread of the novel coronavirus infection (COVID-19) and the April 15 general election, is increasingly likely to resurface. The investigation into the 'Lime Asset Management (Lime) redemption suspension incident,' led by Prosecutor General Yoon Seok-yeol, is expected to increasingly target the Blue House.
According to the prosecution on the 19th, the Criminal Division 6 of the Seoul Southern District Prosecutors' Office, which is investigating the Lime incident, has received and been analyzing for over a month a transcript of conversations between Mr. Jang, a former head of the Banpo WM Center at Daishin Securities who sold Lime funds, and victims. The transcript includes the appearance of Mr. A, a former Blue House administrator who previously worked at the Financial Supervisory Service, raising suspicions of 'collusion with the regime.' The prosecution is reportedly focusing on organizing this part. A prosecution official told Asia Economy over the phone, "The time required for transcript analysis varies depending on the volume and content. It is difficult to say when this analysis will be completed."
Victims of Lime Asset Management funds held a press conference on the 21st in front of the Seoul Southern District Prosecutors' Office in Yangcheon-gu, Seoul, urging the prosecution to conduct a swift investigation. The victims filed a complaint with the Seoul Southern District Prosecutors' Office against the head of Daishin Securities Banpo WM Center on charges including fraud under the Act on the Aggravated Punishment of Specific Economic Crimes and fraudulent trading under the Capital Markets Act. Photo by Yoon Dong-ju doso7@
Legal circles predict that the analysis will be completed by the end of this month at the latest. After the analysis, the investigation team is expected to report the findings to Prosecutor General Yoon and determine the direction of the investigation. Attorney Kim Jeong-cheol of Law Firm Uri, representing the Lime fund victims, stated on his social media account on the 17th that "four lines of investigation are necessary," listing ▲ fraudulent sales of financial products by the sales company, fraudulent unfair trading acts, and conspiracy with Lime ▲ Lime Asset Management's fund rolling and manipulation of returns ▲ stock price manipulation and corporate raiding through investments by Lime Asset Management ▲ power-type lobbying and embezzlement. On the 18th, he also released part of the transcript and expressed the view that "investigation into suspicions of collusion with the regime should be prioritized." Attorney Kim added, "The key fugitive figure, former Lime Vice President Lee Jong-pil, frequently talked about the Blue House just before fleeing."
The prosecution has formed a dedicated arrest team to pursue former Vice President Lee and related parties, but it is unclear whether they can secure custody immediately. Former Vice President Lee disappeared after taking a train to Busan on November 14 last year. The prosecution is reportedly having difficulty confirming his whereabouts. Among the immediately actionable measures, summoning former Blue House administrator Mr. A is considered likely. The timing is expected to be right after the transcript analysis is completed.
Summoning Mr. A would imply that the prosecution's investigation has reached the doorstep of the Blue House, which is expected to highlight the conflict structure between the current administration and the prosecution once again. On the 16th, there were suspicions that the sudden resignation of Choi Kang-wook, Secretary for Public Office Discipline at the Blue House, was related to the Lime incident. Secretary Choi had resisted even after being indicted on charges of obstruction of business for issuing false internship certificates to the son of former Minister of Justice Cho Kuk, but decided to resign abruptly amid reports of Blue House administrators being involved in the Lime incident.
The prosecution's summoning of former Blue House officials could exert significant pressure on the administration, coinciding with the emergency situation due to the spread of COVID-19 and the upcoming general election. This also means that Prosecutor General Yoon has considerable political discretion in deciding the timing of summoning Mr. A. Upon his inauguration in July last year, Yoon emphasized "crackdown on market-disturbing unfair acts," stating that "crimes that undermine fair competition order must be dealt with firmly." On the 5th, Yoon reinforced the Lime investigation by dispatching three prosecutors from the Seoul Central District Prosecutors' Office and one from the Seoul Eastern District Prosecutors' Office to the Seoul Southern District Prosecutors' Office.
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