Lee Myung-bak Investigation

[Anchor Lead]

The prosecution's investigation has revealed that ex-President Lee Myung-bak funneled funds from the auto parts company DAS to help him win elections. Meanwhile, prosecutors say they also believe that the former leader used a building he owned in Seoul’s Seocho district to stash illegal funds.

[Pkg]

A slush fund of roughly 34 billion won was created at DAS, an automotive parts company. The prosecution specified in an arrest warrant that it was ex-President Lee Myung-bak who had ordered the money to be accumulated. Lee is even accused of suggesting ways to build the slush fund to DAS executives. The suggested methods included accounting fraud and issuing fake tax invoices. The prosecution also stated where the secret fund was used. The money was used for Lee's parliamentary, mayoral, and presidential election campaigns. It also went to pay for election camp staff and to bribe pro-Lee journalists. Prosecutors also believe that Yeongpo Building served as a reservoir where illegal funds were laundered and stored. Bank accounts in employees' names were used to hide Lee's secret cash and assets. The prosecution said that Lee received annual reports on the slush fund total from DAS management. He even instructed his brother-in-law to cross-check the amount. It was also found that Lee called a meeting during the special prosecution investigation in 2008 and instructed DAS executives to destroy evidence and provide false testimonies. The fact that the former president had been the actual owner of the automotive parts company was a serious violation of the Public Official Election Act, enough to nullify his presidential election victory.