Corruption Trial

[Anchor Lead]

The man known for managing the assets for ex-President Lee Myung-bak is facing trial for embezzling some six billion won and breach of trust. Lee Byung-mo, currently the secretary-general of the Cheonggye Foundation is not the only one caught up in the corruption scandal surrounding the former president. Members of Lee’s family have been making contradictory statements about their ownership of DAS, an auto parts company.

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Lee Byung-mo, secretary-general of the Cheonggye Foundation, is going to trial. He is charged with embezzling more than 6 billion won and breach of trust. Of that six billion won, four billion have been given to the firm owned by Lee Si-hyung, the son of ex-President Lee Myung-bak. The prosecution is tracing the flow of money to see if anything leads back to the former president's slush fund. It is noted in Lee's arraignment notice that the actual owner of DAS is ex-President Lee. Currently, DAS shares are divided up among the former president's family. His older brother, Lee Sang-eun, owns 47.26% of the stake, his deceased brother-in-law's wife, Kwon Young-mi, 23.6%, and the rest is divied up between the Ministry of Strategy and Finance and the Cheonggye Foundation. Kwon, the first one to be summoned, testified that she is the real owner of the shares in her name. Lee Dong-hyung, ex-President Lee's nephew, admitted that his father's shares actually belong to the former president. However, his father, the former president's older brother, stated otherwise.

[Soundbite] Lee Sang-eun(DAS Chairman (Mar. 2)) : "(Did you admit that the shares are ex-President Lee's?) No, I didn't. I told them the facts."

Lee Myung-bak's brother claimed that he actually owns his shares, while Kwon's shares belong to the ex-president. Apparently, the family members are pointing fingers at one another over who actually owns the shares. The prosecution must prove, even partially, that the former president owns the stocks under borrowed names in order to slap him with bribery or embezzlement charges. The prosecutors believe that DAS Chairman Lee and Kwon have been managing the ex-president's assets accumulated under borrowed names.