Summoning of suspects in savings bank scandal delayed after parliamentary subpanel’s decision


Prosecutors geared up for a dogfight with the assemblymen over the weekend after a parliamentary subcommittee agreed to push ahead with its legislation plan to remove a central investigation unit of the state prosecution.

A six-member panel under the special legislative committee on judicial reform announced on Friday that they agreed to abolish the key investigation unit of the Supreme Prosecutors’ Office, citing the unit’s vulnerability to political pressure as the main reason.

The central investigative unit, which mainly deals with high-profile cases involving politicians or other influential figures, is often criticized for being influenced by those in power. Investigations by the central unit are under direct control of the prosecutor general, who is appointed by the president of Korea.

Friday’s decision, nonetheless, triggered harsh, organized protests from prosecutors with some in the unit calling the move “an open interruption” of a probe in progress.

The legislative move came as prosecutors are zeroing in on former and incumbent top government officials and politicians suspected of taking bribes from the now-suspended mutual savings banks in return for helping them avoid sanctions for their irregularities.

The central unit temporarily stopped the probe during the weekend.

Prosecutor General Kim Joon-gyu will convene an emergency meeting of senior prosecutors on Monday to discuss how to respond to the move to remove the unit, according to SPO officials.

“I really don’t know what the politicians’ ulterior motives are behind this organized obstruction of an (ongoing) investigation,” Woo Byung-woo, a prosecutor involved in the savings bank probe, was quoted as saying by a vernacular newspaper.

“But if the unit is going to be scrapped and replaced by special prosecutors, what would the suspects and witnesses (of the savings banks scandal) think of us? It could give them the wrong idea that they might be able to avoid trouble if they just shut their mouths and buy time.”

Political parties, at least for now, are unlikely to reverse their decision to scrap the unit.

“The right and wrong of the central investigation unit should be determined by the people, not by the prosecution which is a concerned party,” the main opposition Democratic Party spokesperson Lee Yong-seop said Sunday.

“The prosecution should exercise their rights according to the law.”

The ruling Grand National Party had initially sought to “recommend” the prosecution voluntarily abolish the central investigation unit, but after months-long debates with the DP, endorsed the plan to scrap it by law.

Angered by the legislators’ decision on Friday, members of the central unit are expected to slow down their probe into Busan Savings Bank, which is at the center of the snowballing corruption scandal.

They apparently delayed the summoning of Kim Jong-chang, former head of the Financial Supervisory Service, for questioning over allegations that he neglected duties as the top financial regulator to help the insolvent savings banks survive inspections.

Kim is suspected of being asked by arrested former state auditor Eun Jin-soo to ease the extent of the inspection and sanctions on savings banks.

By Kim So-hyun (sophie@heraldcorp.com)