GYEONGGI-DO PROV. GOV’T RAIDED

[Anchor Lead]

The prosecution raided 19 locations including the Gyeonggi-do provincial government's governor office in relation to allegations that Ssangbangwool group sent money to North Korea. Former Gyeonggi-do vice governor Lee Hwa-young was summoned for questioning for the second time, and he was also cross-examined with Kim Seong-tae, the former head of Ssangbangwool Group. Ultimately, prosecutors are looking links to DP chair Lee Jae-myung who served as Gyeonggi-do Governor at the time. With the arrest consent motion for Lee passed on to the national assembly, prosecutor's investigation into the case is likely to gain speed.

[Pkg]

In the latest search, the prosecution raided 19 locations including the Gyeonggido provincial government's governor and deputy governor's offices as well as its planning and coordination office and peace and cooperation bureau. In the search warrant, former Gyeonggi-do vice governor Lee Hwa-young is indicated as a suspect accused of violating the foreign exchange transactions act in connection to Ssangbangwool Group's alleged cash transfer to North Korea. The raid covered Lee's former office as well as the working space of the current governor Kim Dong-yeon whose computer was also seized. Prosecutors are known to be verifying whether there are documents left behind by previous governor Lee Jae-myung who is now chairman of the main opposition Democratic Party. The search is believed to signal the prosecution's intent to now earnestly look into Lee's potential connection in the North Korea cash remittance case. On the same day, the former vice governor Lee Hwa-young was summoned for questioning for the second time. Lee was also cross-examined with Kim Seong-tae, the former head of Ssangbangwool Group. Kim claims that after consulting with then vice governor Lee, he paid North Korea 3 million dollars, which was intended to facilitate a visit to the North by then governor Lee Jae-myung. However Lee Hwa-young reportedly argued he has nothing to do with the money transfer, repeating his claim from the first interrogation last week.

[Soundbite] Hyeon Geun-taek(Lawyer for Lee Hwa-young) : "The issue at hand is whether there was a proxy payment. As for the USD 5 mn sent, we don’t know about that."

The Gyeonggido provincial government, which was raided multiple times recently due to a number of different cases, has expressed strong displeasure over the latest search that even included the office of the incumbent governor who is completely irrelevant to the ongoing case.

[Soundbite] Kim Jin-wook(Spokesperson, Gyeonggi-do Prov.Gov’t) : "Such an extensive search is highly unusual and it causes serious setbacks to provincial affairs."

As the investigation ramps up into the alleged cash transfer, some pundits speculate that opposition leader Lee Jae-myung may even be summoned again.