hankyoreh

By Kim Jeong-pil and Hwang Chun-hwa, staff reporters

Former President Noh Tae-woo, 80, recently filed a lawsuit against his son's father in-law, Shin Myung-soo, former chairman of Shindongbang Corporation. Noh accused Shin of having without permission used a secret fund that he had been asked to keep. Noh is seeking the restitution of funds. This cause may sound appealing, but the size of the secret fund is much larger than the amount of restitution. As such, there have been speculations that Noh is trying to acquire the difference between the fund and the restitution using this case.

According to statements made by prosecutors on June 11th, in 1990 Noh gave Shin 23 billion won (US$20 million) and asked him to “Manage it well for the children.” This money was used to purchase Seoul Center Building. It was later reported that Shin mortgaged the building to pay his debt, although it was Shindongbang Corporation that owned it. Noh stated that with interest, the money he left to Shin came to a total of 65.5 billion won ($56 million).

During his presidency (Feb. 1988 to Feb. 1993), Noh created a secret fund with bribes he received from corporations. The fund was managed by Lee Hyun-woo, former chief of presidential security. For accepting bribes, Noh was sentenced in 1997 to 17 years imprisonment and fines of 269.9 billion won ($230 million) by the Supreme Court. Later that year, he was granted amnesty and was reinstated. But restitution was excluded from the amnesty.

According to the second division of Seoul Central District Public Prosecutors’ Office, Noh has paid 239.8 billion won ($205 million), 91% of his restitution since 1997, through 97 payments. His amount of unpaid restitution is 23.1 billion won ($25 million).

If the amount of 65.5 billion won ($56 million) does turn out to belong to Noh, it will be unclear who is responsible for paying that amount. Because there is no interest on restitutions, the outstanding amount remains the same.

A prosecutor from Seoul Central District Public Prosecutors’ Office stated, “It is my understanding that the leftover money will be given to Noh.” It is their opinion that there is no other way even if it is illegal money received in the form of bribes.

There is speculation that Noh has played a scheme to pay in full his restitution as well as to possess what is left of the money he received as bribes. “The health of the former president is deteriorating and does not have much money at this point due to payments of restitution.” stated, a mid-level prosecutor. “It is probably his calculation to live proudly by paying in full his restitution as well as to take what is left of his money.” he added.

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