The ruling Grand National Party set to work on legal measures to guarantee comensation for the victims of the savings bank scandal.

GNP members of the special committee met with Financial Services Commission Chairman Kim Seok-dong and Financial Supervisory Service Governor Kwon Hyouk-se on Wednesday to discuss the revision of related laws and the legislation of a special law, officials said.

“The government, too, agreed that the victims of suspended savings banks must be compensated one way or another,” said Rep. Cha Myeong-jin of the party sitting on the panel.

“Under this principle, we have decided to formulate detailed measures such as the legislation of a special law with temporary effects.”

Rep. Lee Jong-heuk submitted a victims’ compensation bill, which will call for raising a special compensation fund with the fine and other assets collected from executives of the Busan Savings Banks.

This bill was in many ways similar to the suggestion made by the main opposition Democratic Party on Sunday ― to fully compensate the victims’ losses by disposing of the savings banks’ assets and clawing back their secret funds.

Rep. Lee Jin-bok and other Busan-based lawmakers submitted in May the revised bill on the current depositor protection law, which fully guarantees until 2012 the financial losses of savings banks victims.

The proposal for full compensation, however, was criticized for being unrealistic and partial in relation with other financial loss cases.

Also, during the meeting, the majority of the lawmakers were in favor of legislating a special law, instead of revising the depositor law, officials said.

Meanwhile, the DP requested the prosecution to step up the investigation and to put on the wanted list a key financial broker who was allegedly involved in the Bohae and Samhwan savings banks’ irregularities.

Rep. Ooh Che-chang once again confirmed the party’s determination to summon other key witnesses, despite the ruling party’s opposition.

“We have seen little progress so far on the witness selection, but are determined to include all crucial witnesses, even at the cost of prolonging the state investigation period,” Ooh said.

“Parties, though, reached an agreement to include the Supreme Prosecutor’s Office in the parliamentary investigation.”

Once the controversial witness issue is solved, the parliamentary committee is to speed up its investigation in order to deal with the issue in the August provisional session, officials said.

By Bae Hyun-jung (tellme@heraldcorp.com)