Prosecutors may question Lee’s son if suspicions over retirement house not settled


A presidential office worker was summoned to Seoul Central Prosecutors’ office on Tuesday, to be questioned over allegations that Cheong Wa Dae paid for property President Lee Myung-bak purchased under his son’s name earlier last year.

If their suspicions remain, investigators are expected to question Lee Si-hyong, the President’s son, as well.

According to local broadcasting network MBC, Cheong Wa Dae is suspected of paying an additional 600 million won ($521,739) to Lee Si-hyong, when he bought 462 square meters of land in Naegok-dong, a wealthy area in southern Seoul, last May.

Lee bought the plot of land for 1.12 billion won as a private residence, whereas the presidential office bought additional land in the area for security personnel at a cost of 4.28 billion won. The estate was likely to be ceded to the president after a certain period of time at a low price.

However, the prosecutors found that Lee should have paid 1.7 billion won, while the presidential office paid the 600 million won from the state coffers. It could be a violation of the real estate transaction law, observers said.

Cheong Wa Dae reportedly told the prosecution that the appraised value of the area Lee bought was much cheaper than the spot the government secured and that the payment is not illegal. However, prosecution officials said that Lee Si-hyong may be called in for questioning if the presidential office fails to convince investigators. The interrogation of the head of the presidential security department as well as other key figures involved in the purchase is inevitable, they said.

The investigation was initiated by the opposition Democratic Unified Party, which has filed a complaint against the presidential security department for its part in the real estate transaction.

Criticism arose when it was discovered that the president and his family bought the Naegok-dong real estate for their home after Lee’s retirement. The fact that the president bought the land under his son’s name goes against the real name property transaction law.

Cheong Wa Dae explained that the president borrowed his son’s name for fear that a land purchase in the presidential name could trigger real estate speculation in the area. However, the excuse invited mockery and distrust.

President Lee has said he will not live at the Naegok-dong residence and that he has asked his aides to sell the property, mindful of the public sentiment.

By Bae Ji-sook (baejisook@heraldcorp.com)