South Korean prosecutors have been investigating whether billions of won recently found to have funneled into bank accounts of family members of former President Chun Doo-hwan are part of the ex-leader's slush funds, prosecution officials said Tuesday.
Financial officials have informed the prosecution that they found 4.1 billion won (US$4.3 million) in bonds were transferred to bank accounts of Chun's second son, Jae-yong, and his two sons after being converted into cash, prosecution officials said.
Prosecutors are trying to find the original source of the money, suspecting it might be part of secret funds hidden by the ex-president.
If the money is confirmed to be from him, the whole amount will be seized by the prosecution, the officials said.
Chun seized power in a military coup in 1979, and he is notorious for suppressing political dissidents until he stepped down in early 1988.
The former president was convicted of embezzlement and bribery in 1997, and a Seoul court ordered him to return to state coffers the 220 billion won (US$234.5 million) he was suspected of having accumulated as slush funds during his presidency.
Chun returned only part of the amount, with 167 billion won still outstanding.
In February 2004, prosecutors indicted Chun Jae-yong on charges of having stashed away 16.7 billion won in national housing bonds for tax dodging purposes. Prosecutors say he evaded 7.1 billion won in gift taxes in this manner.
Judges at the Seoul High Court in October that year said the junior Chun was given at least 7.4 billion won by his father, who ruled the country for seven years from 1980 on the basis of military power. The case is currently pending at the Supreme Court.
Seoul, Nov. 14 (Yonhap News)
Prosecutors looking into money suspected of being slush funds from ex-President Chun |
