Roh apologises for funding scandal
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President Roh.
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SEOUL, South Korea (Reuters) -- South Korean President Roh Moo-hyun has apologized for disappointing his country with a political funding scandal that has embroiled his close aides.
In an address before a New Year's news conference, Roh also said the economy -- Asia's fourth largest -- was showing signs of a turnaround in investment and consumption, but called on labor unions to refrain from demanding excessive wage increases.
The funding scandal, involving millions of dollars of under-the-table donations from the country's "chaebol" business conglomerates, has tarnished the 57-year-old Roh's image as a reformist who crusaded to purge politics of corruption.
Prosecutors indicted eight aides and donors last month for their roles in illegal fundraising in the December 2002 election in which Roh defeated conservative opposition leader Lee Hoi-chang.
"The illegal presidential election fundraising and the misdeeds of those around me have disappointed everyone. I again extend my apology," Roh said.
In addition to the aides, eight members of parliament -- including key figures from both 2002 campaigns -- were arrested in connection with a scandal that has rocked Roh's year-old government and embarrassed the opposition ahead of a parliamentary election in April.
The scandal, which emerged in October, has prompted the opposition-controlled parliament to set up a special counsel to investigate three aides to Roh who have been implicated in illegal fundraising and other charges.
Roh is not a subject of the 60-day special investigation, which is being closely watched for its expected impact on the April 15 election.
But when the eight Roh aides or donors were indicted -- three for bribery and five for illegal fundraising and tax evasion -- prosecutors said Roh was aware of some of the improper fundraising.
Illegal funds
But the prosecution stopped short of pursuing Roh, citing a constitutional law that exempts sitting presidents from being charged with criminal offences other than grave crimes threatening national security.
Roh said on December 14 he would step down and retire from politics if his party was found to have received and used more than a 10th of the illegal political funds his opponent raised in the December 2002 election campaign.
The man Roh defeated in the 2002 election, Lee Hoi-chang of the main opposition Grand National Party, has admitted to taking 50 billion won ($42 million) in illicit cash. Roh's indicted associates were accused of taking six billion won.
Late last year, scandal investigators raided the offices of SK, LG and most other major "chaebol," the family-owned business conglomerates that dominate South Korea's economy, and found some had contributed illegal funds to both campaigns in 2002.
Opposition parties pushed through a bill last year to set up the special counsel because they said they did not trust the prosecution to conduct an unbiased investigation. The counsel's 60-day investigation can be extended to 90 days if necessary.
Copyright 2004
Reuters. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
