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Former President Park Geun-hye heads to the courtroom at the Seoul Central District Court to attend her trial on bribery and corruption charges on Oct. 10. (by Baek So-ah, staff photographer)
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Prosecutors detail the illegal personal spending from a slush fund controlled by the former president
Investigation findings released on Jan. 4 by prosecutors indicting former President Park Geun-hye for receiving “special activity funds” from the National Intelligence Service (NIS) show most of the more than 3 billion won provided to have been used in secret and without guiding principles as a kind of slush or “petty cash” fund. In effect, the money was used to fund the manipulation of government operations – a long way from “governance fund for the sake of the state” that former NIS chiefs claimed it to have been. The conclusion reached by prosecutors was that the entire process from requests to designation of payment recipients took place under Park’s control. The third special investigations division of Seoul Central District Prosecutors’ Office, under chief prosecutor Yang Seok-jo, said on Jan. 4 that Park had received a total of 3.65 billion won (US$3.44 million) in tribute payments from the NIS. While 150 million won (US$141,200) of the amount was delivered directly to Chief of Staff Lee Won-jong between June and August 2016, the remaining 3.5 billion won was used as a slush fund. Unlike the 12 billion won (US$11.3 million) received by the Blue House each year for special activities – which was strictly managed by the head of a financial team under the General Affairs Secretary – the 3.5 billion won was administered in a separate coffer by former General Affairs Secretary Lee Jae-man. The only people aware of the money’s existence at the time appear to have been Park herself; the members of the so-called “doorknob triumvirate”; lawmaker Choi Gyung-hwan, a prominent pro-Park figure who requested “support for the Blue House” from the NIS; the director of the NIS’s planning and coordination office; and former NIS chiefs. Personal expenses included borrowed phones, private residence maintenance, reiki therapy Apart from 200 million won (US$188,300) received from the NIS and delivered to Park by former Blue House secretary Jeong Ho-seong following the government interference scandal’s eruption, the other 3.3 billion won (US$3.1 million) all passed through Lee Jae-man’s hands. Around 1.5 billion won (US$1.4 million) of that was used for personal expenses at Park’s direction, including 365 million won (US$343,600) toward fees for Choi Soon-sil’s borrowed-name mobile phones, management of a private residence in Seoul’s Samseong neighborhood, and reiki and exercise therapy charges; 976 million won (US$918,800) for “triumvirate” administration costs; and 156 million won (US$146,900) in wedding gifts and funeral donations. For the use of borrowed-name phones and payment of charges, Lee would pay 10 million won (US$9,400) a month from the separate coffer controlled by former administrative officer Lee Yeong-seon through former secretaries Ahn Bong-geun and Jeong Ho-seong on orders from Park, after which the money would be sent from Lee Yeong-seon’s account. Park and aides used a total of 51 borrowed-name phones during her term to contact Choi and others, paying around 13 million won (US$12,200) in charges alone. Gas payments for the boiler in the Park’s private residence in the Samseong neighborhood were also sent from Lee’s account. Lee additionally received cash to pay for reiki, exercise therapy, and cosmetic injections at Park’s official Blue House residence. Of the 1.5 billion won determined by prosecutors to have been used for personal expenses, the largest part consisted of spending to manage the “doorknob triumvirate.” Apart from the Blue House special activities fund, Park also had 3 to 8 million won (US$2,800–7,500) a month – 480 million won (US$451,900) in total – delivered to the three through Lee Jae-man for “activity expenses.” Another 490 million won (US$461,300) was provided for their “holiday expenses.” During their investigation, prosecutors obtained a post-it note in Choi’s handwriting about the payment of 370 million won (US$348,300) in holiday expenses to the three between 2013 and 2015. The triumvirate members themselves stated under questioning from prosecutors that the Choi’s memo was an accurate record of the holiday expenses they had received. Nearly $2 million remains unaccounted
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A memo written by Choi Soon-sil recording payments to the so-called “Doorknob Triumvariate” of Jung Ho-seong, Lee Jae-man, and Ahn Bong-geun. Jung and Lee both received 30 million won in 2013, and 50 million won in 2014 and 2015, while Ahn received 30 million won in 2013, 50 million won in 2014, and 30 million in 2015. The remainder (120 million won) was marked “keep.”
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