hankyoreh

Former President Lee Myung-bak (right) and the man referred to as his “steward

Prosecutors investigating the illegal diversion of special activity funds from the National Intelligence Service (NIS) are now turning their attention to the Blue House under former President Lee Myung-bak (2008–13).

On Jan. 12, the investigation team conducted a surprise raid in connection with the case. While the prosecutors have remained extremely cautious for fear of facing “targeted investigation” allegations, the public’s attention is already turning to the case’s potential to reach as far as Lee.

The second special investigation division of the Seoul Central District Prosecutors’ Office, which has been investigating the illegal diversion of NIS special activity funds, conducted search and seizure operations on Jan. 12 targeting the offices and homes of former Blue House general affairs and planning secretary Kim Baek-joon, former second civil affairs secretary Kim Jin-mo, and former personal presidential secretary Kim Hee-joong.

Prosecutors explained that the three were implicated when tracking the destinations of special activity funds illegally diverted under former NIS director Won Sei-hoon. Whatever the circumstances, the development means that the prosecutors’ investigation into illegal special activity fund appropriation – which had seemingly come to an end with punishments against former Deputy Prime Minister for the Economy Choi Gyung-hwan and other Park Geun-hye administration figures – is now reaching back to the previous administration. It’s a situation whose ramifications remain unpredictable for now.

As prosecutors investigate cases directly and indirectly related to the Lee administration, allegations surrounding a 12 billion won (US$11.3 million) DAS slush fund, pressure to recover a 14 billion won (US$13.2 million) DAS investment, and the ordering of illegal political interference by the NIS and Cyber Command are only growing. Signs now point to the weight of the prosecutors’ investigation into “eradicating deep-rooted vices” shifting from the Park administration the Lee administration.

The raid’s targeting of Kim Baek-joon – referred to by many as Lee’s “steward” - was seen as particularly notable. The investigation into illegal NIS special activity fund diversion, which ultimately led to additional indictments against Park Geun-hye on bribe acceptance charges, began with the Oct. 2017 arrest of former Blue House general affairs secretary Lee Jae-man, who had been referred as the “Blue House door knocker.”

Kim Hee-joong’s role as a fixture in the Lee administration similar to that of secretary Jeong Ho-seong in the Park administration. The similarities have fanned speculation that prosecutors have “learned” from their past investigation and may be going beyond punishing individual improprieties by Kim Baek-joon and others to target Lee Myung-bak himself.

Kim Baek-joon is one of Lee’s very closest associates, having worked side by side with him for over 40 years since meeting when Lee was president of Hyundai Engineering and Construction. Sources said that during his five years at Lee’s Blue House, he was known for handling “dirty work,” including unofficial and private matters. If he did receive “tribute payments” from an illegally diverted NIS budget, the focus of the prosecutors’ investigation is likely to turn to whether Lee was aware – and whether Kim was doing “jobs” for him.

Kim is also suspected of deep involvement in Lee’s establishment of LKe Bank with Kim Kyung-joon of BBK, as well as the forced recovery of a 14 billion won investment from DAS that is currently being investigated by prosecutors. With prosecutors already investigating two cases with the allegations concerning the 12 billion won DAS slush fund, Kim could end up being a key link for all of the allegations surrounding Lee.

Prosecutors have cautioned against reading too much into what they called the “early stages” of the investigation.

“These are just individual improprieties,” a source with the prosecutors said. “We’d prefer you didn’t assign any great meaning [such as the investigation expanding to include Lee] to it.” It’s a signal of the potential political burden the investigation poses. But sources among and around the prosecutors said the investigation could indeed extend to the question of Lee’s involvement once in-person questioning is completed.

Soon after the prosecutors’ Jan. 10 raids on Kim Baek-joon and others in connection with NIS special activity fund payments, Lee called a meeting with associates at his office in Seoul’s Samseong neighborhood to discuss response measures.

In a telephone conversation with the Hankyoreh following the meeting, Lee’s camp protested the prosecutors’ actions as “clear-cut political retaliation.”

“The current administration has begun an operation to retaliate to the fullest against former President Lee,” a member of the camp said.

“They’re trying to dredge things up from ten years ago in their investigation. As far as I’m aware, the Blue House never received any special activity funds from the NIS during the Lee Myung-bak administration.”

According to one source close to the former President, Lee repeatedly told associates after the NIS “tribute” case first broke that the Blue House had “never conceived of taking special activity funds from the NIS” and that he was “utterly unaware of that kind of system.”

“I don’t think there is anyone under the Lee Myung-bak administration who officially accepted NIS special activity funds at the Blue House,” another source said.

“As far as whether anyone accepted special activity payments individually, there’s no way to examine everyone,” the source added.

Lee’s camp voiced indignation over the current tax audits of DAS and full-scale investigations into NIS internet posts and the special activity fund diversions.

“They seem intended to nail former President Lee Myung-bak somehow on something,” said one of his associates.

By Kang Hee-cheol and Jung Yu-gyung, staff reporters

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