Bareun Party Chairwoman Lee Hye-hoon is in the hot seat over an allegation that she received illegal funds from a businessman in exchange for business favors.
The prosecution said Friday it will begin looking into the allegation early next week as the businessman filed a petition with the prosecution Thursday. Rep. Lee said she did borrow money from the businessman some time ago but paid it all back, denying it was political funding.
The businessman, surnamed Ok, claimed earlier this week that he had provided 60 million won ($53,000) to Lee from October 2015 in the lead-up to the general election. He said in an interview with local broadcasters that he handed over cash and designer items including bags, watches, belts and clothes on multiple occasions at a coffee shop, a hotel, and her office until March.
Ok claimed Lee asked for some money, saying she would help his business if elected. He showed a purported text message from Lee expressing appreciation, as “evidence.”
Ok said in return for the money, Lee arranged meetings between him and vice presidents of a big company and a bank; but added that “there was no case where I signed a business contract with anyone with Lee’s help.”
Lee denied the accusation, saying she repaid the loan with no strings attached.
“He approached me first, saying he wanted to help me with his wide network in the media and political circles,” Lee said, noting a senior politician who is close to former President Park Geun-hye introduced him to her.
“He frequently contacted me and offered money, saying I could pay it back later. I paid back little by little and settled the amount I owed about three to four months ago.”
Lee added she also paid for designer items which Ok offered her.
She claimed Ok had recently requested money saying his business was having trouble, so she started keeping her distance from him.
“He gave a distorted version of the story to the media because I did not respond to him,” the party leader said.
Lee said she learned later that Ok had been jailed before on charges of fraud.
“I heard that he approached other politicians the same way,” she said.
Despite Lee’s explanation, there may be an inevitable impact on the minor opposition party, party officials say.
The party broke away from the former ruling Saenuri Party, the predecessor of the current main opposition Liberty Korea Party (LKP), after the corruption scandal involving former President Park.
While putting forward a signature phrase of seeking “clean and just” politics, the 20-seat minor party has been struggling to expand its support among the public.
Some party members say Lee should resign as chairwoman if the controversy continues. Asked whether Lee should retain the post, party floor leader Joo Ho-young said, “It is something Lee will decide according to how the situation grows, but party members will form a consensus.” He agreed that Lee’s leadership had been damaged.
Others say that it should seek an alliance with the LKP ahead of the local election slated for June next year in order to gain momentum.
/Rep. Kang Ji Hyun
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