South Korea Prosecutor
South Korea Prosecutor
South Korea Prosecutor
Lee, Jung-Soo*
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against Illicit Drug Trafficking”, which with any information about the people
contains punishment provisions for money involved in order to protect their rights and
laundering related to drug crimes. the secrecy of the investigation before the
Consequently, only money laundering trial. According to Korean Criminal Law,
related to drug crimes is criminalized and prosecutors, police officers and other
can be punished in Korea. Even though it personnel connected to the investigation
is necessary to crimiminalize money can be punished when they release
laundering itself, it is difficult to do so information before the trial. Sometimes,
because of the protection of confidentiality reporters discover the investigation
in financial transactions. information through the copy of arrest or
To trace illegal fund, the SPPO organized search warrants obtained in court. This is
an investigation team consisting solely of because they have easy access to the
officers of the Office. If necessary, the Office warrant in court.
can request the dispatch of officers from From the viewpoint of the mass media,
the Bank Inspection Board and the the people have a right to know and thus
National Tax Administration. The SPPO the mass media, emphasizing freedom of
published the book, “The Reality of the press, try to report the facts. The
Financial Transaction and Its Trace,” problem is that media agencies compete
which speaks about money laundering and with each other to report unproven or
the investigations surrounding it. unconfirmed information and rumors.
Such reports themselves may interrupt the
4. Places of Investigation investigation and violate civil rights. Thus,
In the past, public prosecutors used prosecutors ask for the correction of news
hotels or secret places to maintain based on unproven information by the
confidentiality in the investigation of responsible media agency and prohibit the
corruption by high-ranking government reporters from entering the Public
officials and tax evasion by a conglomerate. Prosecutor’s Office. Sometimes, the press
In principle, public prosecutors investigate club itself prohibits the reporters
such cases only inside the building of the responsible for the news from gaining
public prosecutor’s offices now. The SPPO access to the press club room of the Office.
and the Seoul District Office have special
investigation rooms which only prosecutors VII. THE CORRUPTION CASE OF
in charge are admitted. Even other fellow FORMER PRESIDENT ROH
prosecutors are restricted from entering. TAE WOO
Since October 1995, the CID
F. Prosecutor’s Investigation and
investigated the charges of bribery and
the Mass Media
graft cases of former President Roh Tae
Because the effect of the prosecutor’s
Woo, along with the then Defense Minister,
investigation on the society is enormous,
presidents of banks, and the other high-
reporters always pay attention to
ranking government officials. I introduce
prosecutors who are in charge of important
now the bribery and graft cases of former
cases in order to obtain important sources
President Roh.
of information. Reporters also try to catch
people who come to the Office in relation
A. Background of Investigation
to the investigation and thereby attempt
After the Real Name Financial
to cover all stories about the investigation.
Transaction Regulation came into effect in
However, the Office does not provide them
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August 12, 1993,1 there was a rumor of a Roh had several bank accounts of the slush
huge slush fund circulating in the stock fund. The amount of total transactions in
markets and the private loan markets. In Roh’s accounts was approximately 74
August 1995, the Government billion won (US$100 million) and the
Management Minister Seo Seok-jai at that balance was 36.5 billion won (US$45
time reportedly told reporters under the million dollars). These accounts had been
condition of being “off the record” that close managed by a presidential resident
aides of one of the two former presidents financial officer. It was revealed in the
had approached the ruling camp and asked process of the investigation that the
whether the fund, amounting to 400 billion presidential financial officer followed the
won (US$500 million dollars), could be order of the Chief of the Presidential
converted to the former president’s bank Security Service and opened several bank
accounts using fake and borrowed names. accounts using borrowed names in several
This rumor was reported by the press. banks. After this investigation, Roh
Along with the increase in the national announced in his apology speech that for
interest and suspicion of the slush fund, five years during his presidency, he
Congressman Park Kay-dong of the received about 500 billion won (about
opposition Democratic Party announced at US$630 million) from business owners and
the National Assembly’s plenary session in that the remainder of the accounts was 170
October 19, 1995 that the former President billion won (US$212 million).
Roh had several bank accounts using Roh was summoned on November 1,
borrowed names. Congressman Park 1995 and became the first former president
presented bank account balances as in Korean history to be arrested and
evidence of the slush fund. Bank clerks detained in prison on November 16th for
confirmed the evidence on the same day. the violation of the special act on additional
Accordingly, the prosecutorial authorities punishment for bribery. The next day, the
began to investigate the case, with a strong former Chief of the Presidential Security
will, that although it was a historical Service was arrested and detained too.
bribery and graft case of a former president Along with the arrest, more than sixty
which had never happened in Korea before, people related to the case of false name
prosecutorial authorities would convict him bank accounts, most of whom were high-
and, if found guilty, impose a severe ranking government officers and bankers,
sentence on the purpose of the were summoned and investigated. In
improvement of justice in Korea, and in relation to the bribery, about 200
turn resolve the suspicion that people have businessmen, including thirty-nine of the
about public officials. nation’s major business owners, were
brought in for interrogation. In relation to
B. Investigation Process obtaining illegal real estate, about forty
Holding the search warrant for Roh’s people including Roh’s relatives by
bank accounts that Congressman Park marriage and his close aids were
revealed, the CID traced the slush fund and investigated. In relation to the
summoned the then Chief of Presidential investigation of money laundering and the
Security Service. The CID confirmed that illegal purchase of real estate, 500 bank
accounts were traced and investigated.
1 Under the presidential decree on the mandatory For the investigation of this huge slush
use of real names in all financial transactions, no fund case, the prosecutorial authority
fund can be opened using either a false or borrowed mobilize ninety-two officers, including the
name. Investigation Planning Officer, public
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Korean Criminal Law enumerates the negligence of both the suspect and the
following factors: victim has combined to cause the accident
are also important factors in making a
1. Factors Regarding the Suspect suspension-of-prosecution decision.
a) Age
b) Method and result of the
According to the age of the suspect,
crime
prosecution’s disposition of the case might
The dangerousness of the method of
differ. Generally speaking, prosecutors
commiting the crime, the profits the
deal leniently with juveniles, students and
suspect has gained from the crime, the
the aged.
people’s concerns on the crime, the effect
of the crime on society, the extent of the
b) Character and pattern of
damage and the degree of possible
behavior
punishment are also considered by the
The character, pattern of behavior,
prosecutor. In addition, the prosecutor
hereditary diseases, habit, career, prior
considers whether there exist reasons to
convictions, etc., of the suspect are usually
aggravate or mitigate punishment.
considered in making a suspension-of-
prosecution decision.
4. Circumstances after the
Commission of the Crime
c) Intelligence
Intelligence refers to the suspect’s a) Factors related to the
sensibility. Sensibility is measured by the suspect
suspect’s academic career or extent of Whether the suspect repents the crime,
knowledge. has apologized to the victim, has tried to
compensate for the damages inflicted on
d) Circumstances or the victim, has escaped or has destroyed
environment evidence are important factors in making
The suspect’s circumstances such as a suspension-of-prosecution decision.
family background, vocation, work place,
living standard, relationship with b) Factors related to the victim
classmates and parental guidance are Whether the damages inflicted on the
considered in making the non-prosecution victim have been recovered, and whether
decision. In addition, the prosecutor also the victim wants the suspect to be punished
takes into account the effect of prosecution are also considered.
upon family members of the suspect.
c) Other factors
2. Relationship to the Victim Other factors considered are social
Whether the suspect is a relative to the c i r c u m s t a n c e s , c h a n g e o f p e o p l e ’s
victim or collegue in the work place is also sentiment, time period elapsed after the
one of the factors. commission of the crime, repeal of law,
change of the extent of punishment, etc.
3. Factors on the Crime
a) Motive for commiting the
crime
Whether the crime is a premeditated or
non-premeditated one, whether it was
provoked by the victim, or whether the
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Hanbo Conglomerate took over Kumho Jeong was also found to have received
Steel Company in Pusan and established an enormous amount of credit funds from
Hanbo Steel Company in December 1984. Hanbo Credit Union, one of the companies
It also proceeded with the construction of of Hanbo Group, which is forbidden by law.
Steel Production Facilities at Dangjin with On January 31, 1997, the CID detained
the credit award from banking facilities in Jeong.
December 1990 when the manufacturing As our investigation went further, it was
capacity of Hanbo Steel Company faced its also found that Jeong made illegal requests
limit according to the boom of steel to politicians and high-ranking officers of
production. banking facilities in the course of credit
There was a nationwide suspicion that awards and permission of authorization of
President Jeong Tae Soo of Hanbo Group business, and offered them a great sum of
made a secret fund of an enormous amount bribes in exchange.
in the course of the construction of the From February 1 to 6, 1997, all seven
Dangjin Steel-Production Facilities, and chief persons of banking facilities who
that such embezzlement committed by sponsored the credit funds supplied to
Jeong was possible due to his connections Hanbo Steel Company had been summoned
with politicians, high-ranking officers and and interrogated about the process of the
staff members of banking facilities. credit awards and the non-payment.
The CID of the SPPO started the The present and ex-chief persons of
investigation of the cause of the Hanbo non- banks who received bribes from Jeong Tae
payment on January 27, 1997 under its Soo, such as Shin Kwang Sik, Woo Chan
own decision that the disclosure of the Mok, and Lee Chol Soo, were arrested.
cause and result of the Hanbo case would From Feburary 10 to 12, 1997, all five
be helpful for the recovery of the national politicians—members of the National
economy stricken by the Hanbo non- Assembly Hong In-Kil, Jeong Jae-Chol, and
payment. Whang Byung-Tae from the leading party
(Shin-Han-Kook Party), another
B. Process of the Investigation Assemblyman Kwon No Kap from the
The CID at first conducted a secret opposition party (Kuk-Min-Whoe-Eui
investigation in order to clarify the nation- Party), and the ex-Minister of Home
wide suspicion arising from newspaper Affairs, Kim Woo-Sok were summoned and
reports of the Hanbo non-payment on interrogated. All of them were arrested as
January 23, 1997. they were found to have received bribes
The Central Investigation Department amounting from 200 million to 1,000
prohibited all 36 persons including the ex- million Won from Jeong Tae Soo in
president of the Hanbo Group Jeong Tae exchange for his illegal requests.
Soo from going abroad on January 27, and The CID tried very hard to find any
searched 16 companies of the Hanbo Group evidence of embezzlement of the credit
including the headquarters of Hanbo and funds, on the one hand analyzing account
Hanbo Steel Company as well as the houses books and computerized materials of
of Jeong Tae Soo and his sons. Hanbo Group and on the other hand
On January 30, 1997, the CID tracing 42 bank accounts of Hanbo Group
summoned and questioned Jeong Tae Soo. with a search warrant.
It was found out that Jeong himself issued However, these investigations were not
the dishonored notes and checks beyond easy because Hanbo Group, which had
the payment ability of Hanbo Group. undergone the Sooso Scandal and the graft
and embezzlement case of ex-President
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Figure 1
Supreme Public Prosecutor’s Office
Seoul High Public Taejon High Public Taegu High Public Pusan High Public Kwangju High
Prosecutor’s Office Prosecutor’s Office Prosecutor’s Office Prosecutor’s Office Prosecutor’s Office
Seoul District Taejon District Taegu District Pusan District Kwangju District
Public Prosecutor’s Public Prosecutor’s Public Prosecutor’s Public Prosecutor’s Public Prosecutor’s
Office Office Office Office Office
Tongbu Branch Hongsong Andong Branch Tongbu Branch Mokpo
Office Branch Office Office Office Branch Office
Hambu Branch Kongju Branch Kyongju Ulsan Branch Changhung
Office Office Branch Office Office Branch Office
Changwon District
Pukbu Branch Kanggyong Kimchon Sunchon
Public Prosecutor’s
Office Branch Office Branch Office Branch Office
Office
Chonju District
Uijongbu Chonan Branch Uisong Branch Tongyong
Public Prosecutor’s
Branch Office Office Office Branch Office
Office
Inchon District Chongju District Yongdok Miryang Kunsan
Public Prosecutor’s Public Prosecutor’s Branch Office Branch Office Branch Office
Office Office
Kochang Chongup
Branch Office Branch Office
Puchon Chungju
Branch Office Branch Office
Namwon
Branch Office
Chechon
Suwon District Branch Office
Public Prosecutor’s Cheju District
Office Public Prosecutor’s
Yongdong Office
Branch Office
Songnam
Branch Office
Yoju Branch
Office
Pyongtaek
Branch Office
Chunchon District
Public Prosecutor’s
Office
Kangnung
Branch Office
Wonju Branch
Office
Sokcho Branch
Office
Yongwol
Branch Office
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