[Politics, That Day...] Prosecution Halts DJ Investigation Ahead of Presidential Election... Shinhankukdang Faces Split Crisis

October 21, 1997, Prosecutor General Announces Suspension of Investigation into Kim Dae-jung, Opposition Presidential Candidate
Lee Hoi-chang, Ruling Party Presidential Candidate, Protests; President Kim Young-sam Faces Calls to Resign from Party Amid Political Turmoil

[Asia Economy Reporter Ryu Jeong-min]

Editor's Note‘Politics, That Day...’ is a series planning corner that looks back on Korean politics through the ‘recollection of memories’ related to notable scenes, incidents, and figures that deserve attention.

On October 21, 1997, Kim Tae-jung, then Prosecutor General, announced the suspension of the investigation into the slush fund allegations against Kim Dae-jung, leader of the National Congress for New Politics. [KBS 9 o'clock News broadcast screen]

"If this case is investigated, it is clear that there will be severe national division, difficulties in economic recovery, and total chaos in the country just two months before the presidential election..."

On October 21, 1997, Kim Tae-jung, then Prosecutor General, announced regarding the slush fund allegations against Kim Dae-jung, leader of the National Congress for New Politics, that "the prosecution will postpone this investigation until after the 15th presidential election."

The news of the prosecution halting the investigation of the main opposition party’s presidential candidate just two months before the 1997 presidential election came as a storm not only in the legal community but also in political circles. This was because it was a choice that shook both the ‘legal code’ and the ‘political code.’

The Prosecutor General’s announcement to suspend the investigation of the main opposition party’s presidential candidate was, in itself, an action that influenced the election. It is hard to believe that the Prosecutor General made such a decision alone. Although the prosecution claimed it was an independent decision, political eyes turned toward the Blue House.

Curiosity grew over why then-President Kim Young-sam tacitly approved or abetted a decision that could politically damage Lee Hoi-chang, the ruling party (New Korea Party) leader.

Archive photo / Photo by Mun Ho-nam munonam@

Prosecution investigations related to ruling and opposition presidential candidates before elections have been common scenes in Korean politics. In political circles, there are concerns about the prosecution’s political intervention. On the other hand, there is also a strong counterargument that the rule of law has no sanctuary.

The 1997 presidential election is interesting because the Prosecutor General’s decision to suspend the investigation of the main opposition party’s presidential candidate politically ‘gave wings’ to the candidate.

To understand this scene, it is necessary to look at the 1997 presidential election structure. Leader Kim Dae-jung formed the DJP coalition with politicians Kim Jong-pil and Park Tae-joon to prepare for the election. The New Korea Party was running a project to seize power with politician Lee Hoi-chang at the forefront.

The New Korea Party did not doubt victory in the presidential election. Until 1997, peaceful regime change had never occurred in the Republic of Korea. In terms of organization, funds, and all aspects, the ruling party, New Korea Party, had the advantage.

The problem was that a rift between the incumbent president (YS) and the next power (Lee Hoi-chang) was sensed. Within the ruling party, conflicts between the mainstream and non-mainstream factions continued.

In such a situation, Prosecutor General Kim Tae-jung’s sudden announcement came.

Naturally, Lee Hoi-chang’s camp was boiling with anger. On October 22, 1997, Lee Hoi-chang held an emergency press conference demanding the resumption of prosecution investigations, including the investigation into President Kim Young-sam’s election funds. He also demanded that President Kim Young-sam, honorary chairman of the New Korea Party, leave the party.

Was ‘political master’ President Kim Young-sam anticipating such a situation? He attempted to resolve the political deadlock through a series of meetings among presidential candidates. On October 24, 1997, President Kim Young-sam met with Leader Kim Dae-jung at the Blue House. At that time, President Kim Young-sam stated, “I do not have anyone who must become president or must not become president.”

The president’s declaration of political neutrality seemed like a natural claim, but it was a bitter message for the ruling party’s presidential candidate. President Kim Young-sam’s message at the time revealed his displeasure toward Lee Hoi-chang while politically alleviating the conservative camp’s anxiety about Kim Dae-jung.

The political turmoil between the Blue House and the ruling party that unfolded ahead of the 1997 presidential election continued until the final stages of the election.

Did Kim Dae-jung win the presidential election comfortably based on the favorable political environment created before the election? The path to peaceful regime change was not easy.

To conclude, if Lee In-je of the National Party had not run in the 1997 presidential election, the winner might have been Lee Hoi-chang of the Grand National Party. (Lee Hoi-chang changed the New Korea Party’s name to the Grand National Party before the 1997 election and ran under that name.)

Kim Dae-jung of the National Congress for New Politics received 10,326,275 votes (40.27%) in the December 1997 presidential election. Lee Hoi-chang of the Grand National Party received 9,935,718 votes (38.74%). The vote difference between Kim Dae-jung and Lee Hoi-chang was only 390,557 votes.

Lee In-je of the National Party, who was evaluated to share a political support base with Lee Hoi-chang, performed well with 4,925,591 votes. The reason for the assessment that the 1997 election results would have been different if Lee In-je had not run is because of this.

The 1997 presidential election remains a subject of study in Korean political history for many reasons.