Bribery Scandal Shakes Former President Moon Jae-in’s Legacy

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Mayur Joshi
Mayur Joshihttp://www.mayurjoshi.com
Mayur Joshi is a contributing editor to Regtechtimes, he is recognized for his insightful reporting and analysis on financial crimes, particularly in the realms of espionage and sanctions. Mayur's expertise extends globally, with a notable focus on the sanctions imposed by OFAC, as well as those from the US, UK, and Australia. He is also regular contributor on Geopolitical subjects and have been writing about China. He has authored seven books on financial crimes and compliance, solidifying his reputation as a thought leader in the industry. One of his significant contributions is designing India's first certification program in Anti-Money Laundering, highlighting his commitment to enhancing AML practices. His book on global sanctions further underscores his deep knowledge and influence in the field of regtech.

Prosecutors in South Korea have launched a high-profile investigation into former President Moon Jae-in, marking a significant turn in a case that has been under scrutiny for several years. The probe centers around allegations of bribery involving Moon Jae-in’s former son-in-law, Seo, who allegedly received preferential treatment in securing a position with an airline in exchange for arranging a key government appointment. This case has raised serious questions about the integrity of Moon Jae-in’s administration, and the investigation has attracted widespread attention.

Investigation into Alleged Bribery Ties of Moon Jae-in

The Jeonju District Prosecutor’s Office, specifically the Criminal Division 3, is leading the investigation. The case gained momentum following a search warrant executed on the home of Moon Jae-in’s daughter, Moon Da-hye, on Friday, September 1, 2023. The search is a crucial step in determining whether former President Moon Jae-in was involved in securing a job for his son-in-law at Thai Eastar Jet, a low-cost airline, in return for the appointment of Lee Sang-jik as head of the Korea SMEs and Startups Agency (KOSME).

These suspicions arose after complaints were filed four years ago regarding the hiring of Seo, who had since divorced Moon Jae-in’s daughter. The investigation seeks to uncover whether Seo’s employment was part of a quid pro quo arrangement involving Moon’s administration. The conservative ruling party, People Power Party, and the civic group “Justice People” have been instrumental in pushing the case forward, filing four separate complaints between September 2020 and April 2021.

The Alleged Quid Pro Quo

The heart of the allegations lies in the connection between Seo’s employment at Thai Eastar Jet and the appointment of Lee Sang-jik to the head of KOSME. Lee, a two-term lawmaker with the Democratic Party and founder of South Korea’s budget airline Eastar Jet, was appointed as KOSME president in March 2018. Just a few months later, Seo was appointed as executive director of Thai Eastar Jet in July 2018, despite his lack of experience in the airline industry. This, combined with the financial difficulties faced by the airline, led to suspicions that the presidential office might have been involved in Seo’s appointment.

Prosecutors believe that Lee’s appointment as KOSME chief may have been decided during an informal meeting of presidential secretaries in late 2017. They argue that former President Moon Jae-in and his wife had been supporting their daughter’s family for some time, but this support ceased once Seo was hired by Thai Eastar Jet. This sequence of events has led prosecutors to suspect that the financial support provided by the airline to Seo, including his salary and housing, could be considered a bribe to Moon Jae-in.

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Prosecutors estimate that Seo received a total of 223 million won (approximately $166,500) in salary and relocation expenses to Thailand between July 2018 and April 2020. They view this amount as potential bribes paid to Moon through Seo’s employment at Thai Eastar Jet. As a result, the search warrant explicitly mentioned Moon as a suspect in receiving this alleged bribe.

Despite the mounting evidence and the ongoing investigation, Seo has maintained his silence. He has been questioned three times this year as a witness but has consistently exercised his right to remain silent. This lack of cooperation has added another layer of complexity to the investigation, as prosecutors try to piece together the events that led to Seo’s employment and whether any illegal activities were involved.

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Political Reactions and Legal Implications

The investigation into former President Moon Jae-in has sparked intense reactions from both the ruling and opposition parties in South Korea. The ruling People Power Party has welcomed the investigation, with spokesperson Jeong Kwang-jae emphasizing that “all citizens should be equal before the law.” He stressed that Moon Da-hye, the former president’s daughter, should also be held accountable if found guilty. This statement reflects the party’s determination to pursue the case and hold those involved responsible, regardless of their political affiliations.

However, the investigation has also drawn sharp criticism, with many arguing that it is politically motivated. Critics suggest that the investigation is being used to divert attention from other political issues, including suspicions surrounding current President Yoon Suk Yeol and First Lady Kim Keon-hee. These allegations have been fueled by recent searches of bank accounts belonging to Moon and his wife, which some see as an attempt to target the former president’s family.

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Several prominent figures from Moon’s administration have already been questioned in connection with the case. Cho Hyun-ock, former senior presidential secretary for personnel affairs under Moon, has been booked on power abuse charges, and other former presidential office officials have also faced questioning. Notably, Im Jong-seok, a former chief of staff under Moon, was questioned on August 19, 2023, about his possible role in appointing Lee as head of KOSME. The questioning of Im and other former aides underscores the breadth of the investigation and its potential implications for Moon’s legacy.

The Democratic Party, to which Moon belongs, has vehemently opposed the investigation. On Sunday, September 1, 2023, 37 Democratic Party lawmakers, many of whom were former aides in Moon’s administration, held a press conference at the National Assembly to condemn the prosecution for labeling Moon as a suspect. They accused the current government and the prosecution of engaging in political retribution, warning that such actions would ultimately lead to the downfall of the current administration. These lawmakers argue that the investigation is baseless and serves only to further political agendas, rather than seeking justice.

The investigation has also highlighted the deep political divisions in South Korea. Supporters of Moon view the investigation as an unjustified attack on a former president who made significant contributions to the country during his time in office. They believe that the allegations are being exaggerated and that the prosecution’s actions are politically motivated. On the other hand, critics argue that the investigation is necessary to ensure accountability and that no one, regardless of their position, should be above the law.

As the investigation continues, the legal implications for Moon Jae-in and his family remain uncertain. If prosecutors can establish a direct link between Seo’s employment and the alleged bribe to Moon, it could result in serious legal consequences for the former president. However, proving such a connection is likely to be challenging, particularly given Seo’s refusal to cooperate with the investigation.

In the meantime, the case continues to unfold, with both sides preparing for what could be a lengthy legal battle. The outcome of this investigation will not only impact Moon’s legacy but could also have broader implications for South Korea’s political landscape. As the facts are examined and the investigation progresses, the case against Moon Jae-in remains one of the most closely watched legal battles in recent South Korean history.

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