[Lee Jung-jae Column] Presidential Election Funds, Pandora's Box Has Been Opened

Opposition Leader's Fall, Presidential Impeachment
2003 Deja Vu Was a Double-Edged Sword

[Asia Economy Lee Jeong-jae, Director of the Economic Media School and Editorial Advisor] Last weekend, Kim Yong, Deputy Director of the Democratic Research Institute, was arrested. The significance of his arrest is not small. Kim Yong is one of the closest aides to Lee Jae-myung, leader of the Democratic Party of Korea, to the extent that Lee himself said, "If you are a close aide, you should be at least like Kim Yong." Kim Yong has long managed the financial resources of Lee Jae-myung’s campaign. The 800 million won in primary election funds he received could be the key that opens the door to a massive catastrophe. Its explosive power could be large enough to completely change the power landscape.

So far, the prosecution’s investigation targeting Lee Jae-myung has taken three main directions. The Anti-Corruption Division 2, which handled the ‘Pro-Moon faction gate’ involving former Democratic Party Deputy Secretary-General Lee Jeong-geun; the Anti-Corruption Division 3, which targeted the Daejang-dong scandal; and the Suwon District Prosecutors’ Office, which is investigating corruption among Ssangbangwool executives and the Seongnam FC sponsorship scandal. These three investigative efforts have now begun to focus sharply on one point with Kim Yong’s arrest as the turning point: the investigation into Lee Jae-myung’s presidential election funds. Pandora’s box has finally been opened. While it is difficult to predict the outcome, some inferences can be made. The first-ever presidential election fund investigation in 2003 serves as a precedent.

At that time, the investigation started by chance. It was a period rife with rumors about election funds. The prosecution, investigating SK Shipping’s accounting fraud, uncovered suspicious money flows. They found a link between SK’s embezzlement and slush funds and the presidential election funds. Starting from this, the prosecution raided LG Group and revealed that 15 billion won in cash was delivered by truck at Manam Square. This was the infamous ‘carrying money’ scandal.

The results are well known. The then opposition leader Lee Hoi-chang fell from grace. His image as a straight arrow was damaged. He never recovered. The opposition party was shattered. The Grand National Party, which had to sell its party headquarters to pay compensation, worked under tents in Yeouido. Park Geun-hye emerged as an alternative to Lee Hoi-chang and later became president.

The ruling party was not spared either. President Roh Moo-hyun allowed an investigation into a sitting president, saying, “If even one-tenth of the Grand National Party’s election funds come out, I will resign.” The result was one-eighth. Roh’s close aide Ahn Hee-jung, who collected election funds, was arrested. President Roh was impeached. The ruling party split into two. However, as life and politics are full of ups and downs, the aftermath of the impeachment led to the Uri Party’s landslide victory in the general election.

What about this time? It will not be exactly the same as 20 years ago. There are three major differences. ① In 2003, the prosecution and the president had an uneasy relationship. Now, they are closely aligned. ② At that time, both ruling and opposition parties were investigated. Now, only the opposition leader is under investigation. ③ Back then, presidential candidates from both parties were not investigated. The sitting president was exempt from criminal prosecution, and for the sake of fairness, the opposition leader was also exempt. It was a political choice.

However, the expected outcome is similar. The power map of both ruling and opposition parties will change dramatically. Lee Jae-myung’s downfall seems inevitable. He cannot escape legal judgment in the face of concrete evidence. The opposition’s future is uncertain. There is no suitable alternative to post-Lee Jae-myung leadership. The 586 generation, which has controlled Korean politics for 40 years, has reached its expiration. This is a golden opportunity to clear out the 586 generation, but such a thing will never happen. Instead, the voices of the ‘Gaeddal’ and the 586 generation will grow louder, only fueling political chaos and destruction.

The ruling party may also be caught in a backlash. The presidential office will be further labeled as a ‘prosecutorial republic.’ The opposition’s ‘blind resistance’ denying the investigation results is predictable. Amid the country’s precarious internal and external crises, only the flags of political strife will flutter, indifferent to the situation.

Nevertheless, Pandora’s box has been opened. Destruction and chaos will leap out of the box. Hope remains trapped inside. Still, hope will not give up and will continue to sing. The lyrics are as follows.

The prosecution must speak solely based on evidence and facts. Strict and rigorous facts are the only way for the prosecution to survive. The courts must end the ‘political judiciary’ of the Moon Jae-in administration. If the courts are swayed by politics again, the judicial system in this land will be completely destroyed.

The president should not only use the prosecution and the right arm of investigation but also the left arm of policy, livelihood, and economy. Not only should past wrongs be corrected through clearing out deep-rooted evils, but the future, vision, and hope must also be spoken of. If the opposition adds the clearing out of the 586 activist generation, it would be the icing on the cake.

Lee Jeong-jae, Director of the Economic Media School and Editorial Advisor

This content was produced with the assistance of AI translation services.