'Roh Tae-woo slush fund concealment allegations': Ambassador to China Ro Jae-hun named as a suspect; planned summons before year-end

[Financial News] The Public Prosecution Office, which is investigating allegations that the family of the late former President Roh Tae-woo concealed slush funds, has registered his son, Ro Jae-hun, South Korea’s ambassador to China, as a suspect and begun preparations to summon him in earnest.
According to legal sources on the 10th, the Asset Recovery Division of the Seoul Central District Public Prosecution Office, headed by Chief Prosecutor So Jeong-su, recently registered Ambassador Ro as a suspect on charges including violating the Act on Regulation and Punishment of Criminal Proceeds Concealment. The Public Prosecution Office is looking into the possibility that some of former President Roh’s slush funds flowed to the East Asia Cultural Foundation and The Roh Tae-Woo Foundation, where Ambassador Ro serves as chairman or has been involved in their operations.
The key lead in the investigation is the so-called ‘Kim Ok-suk memo,’ submitted as evidence during the appeal proceedings in the divorce case between SK Group Chairman Chey Tae-won and Roh Soh-yeong, head of art center nabi. The memo, written in 1998 and 1999, listed records of past funds totaling 90.4 billion won, including ‘Sunkyung: 30 billion won.’ The investigation began after civic groups, including the May 18 Memorial Foundation, filed complaints accusing the former president’s family of concealing slush funds and evading taxes.
In August, the Public Prosecution Office launched a compulsory investigation, conducting search-and-seizure operations at Kim Ok-suk’s home in Seoul’s Yeonhui-dong, the East Asia Cultural Foundation, The Roh Tae-Woo Foundation and other locations. In late last month, it questioned as witnesses former presidential chief of staff Jeong Hae-chang, former chief of the Presidential Security Service Choi Seok-rip, and former presidential protocol secretary Lee Byung-ki, all mentioned in the memo, as it traced the flow of the funds. Lee Jin-su, acting Minister of Justice (vice minister), also confirmed at last month’s National Assembly audit that “the Asset Recovery Division is conducting a tracing investigation to determine the source of the incorporated foundation’s funds.”
The Public Prosecution Office plans to coordinate a specific attendance date with Ambassador Ro’s side starting next week and complete its questioning before the end of the year. In particular, under the ‘transitional measures for matters under its jurisdiction (90-day grace period)’ provision of the newly established Indictment Agency Act, introduced when the Prosecution Service was transformed into the Public Prosecution Office on the 2nd of last month, the Public Prosecution Office can conduct investigations directly only through December 30. Since cases not concluded by the deadline must be transferred to another investigative agency, the remaining grace period is expected to see Ambassador Ro summoned for questioning and the direction of any legal action determined.


[email protected] Park Ji-hyun Reporter