[30-Year Suspicion of New Military Regime Slush Fund] Opposition Jang Kyung-tae: "No Tae-woo Family Must Promise the Public to Recover Slush Funds"

"Prompt Investigation by National Tax Service and Prosecution Needed"
"There Is National Consensus on Seizing New Military Regime's Slush Funds"

The opposition party is stepping up pressure to recover the secret funds of the New Military Regime for the state during this National Assembly inspection. Members of the Planning and Finance Committee from the Democratic Party of Korea plan to summon witnesses such as Noh So-young, director of the Art Center Nabi, to question them about the secret funds at the National Assembly inspection starting on the 10th. On the 2nd of last month, Democratic Party lawmaker Jang Kyung-tae introduced the 'Secret Fund Forfeiture Act' (an amendment to the Act on the Regulation and Punishment of Criminal Proceeds Concealment) targeting the secret funds of the New Military Regime. Lawmaker Jang emphasized, "The family of former President Roh Tae-woo must promise the public to return the secret funds to the state."

Democratic Party of Korea Assemblyman Jang Kyung-tae / Provided by Assemblyman Jang Kyung-tae's Office

'The illegal secret funds of the New Military Regime' have recently been reexamined. Do you have a grasp of their actual status?

The New Military Regime forces are believed to have amassed secret funds through various channels. It is presumed that they received kickbacks from conglomerates or rebates from large-scale national projects, granting business interests to companies in exchange for returns. In the divorce lawsuit between Chairman Choi and Director Noh, a newly revealed 90.4 billion KRW of secret funds belonging to former President Roh has come to light.

Secret funds have not been uncovered in past investigations. What is the most urgent measure to reveal the true nature of these secret funds?

The most urgent task is to investigate the tax evasion allegations against former Presidents Chun Doo-hwan and Roh Tae-woo and their families. Last year, Chun’s grandson, Chun Woo-won, exposed that the hidden secret funds remain in the form of bearer bonds. It is presumed that the secret funds of the two former presidents were concealed in various forms such as nominee holdings, loans, and investments, and were inherited or gifted.

Nevertheless, their families have not paid a single penny in taxes. The National Tax Service and prosecutors must promptly investigate the tax evasion allegations. According to Article 26-2 of the Framework Act on National Taxes, if a taxpayer evades inheritance or gift tax through fraudulent acts, the tax authority may impose taxes within one year from the date it becomes aware of the inheritance or gift. At the confirmation hearing, National Tax Service Commissioner Kang Min-soo also responded, "If the illegal political funds of the New Military Regime are still within the statute of limitations and are confirmed, they must naturally be taxed."

How does the recently proposed bill help in recovering the secret funds of the New Military Regime?

Even if the secret funds of the New Military Regime are revealed, under current law, prosecution cannot be initiated due to the death of the criminal. The scope of confiscated property has been expanded to allow confiscation and recovery of criminal proceeds from those who destroyed the constitutional order, even if prosecution is not possible due to the death of the criminal or expiration of the statute of limitations. If this amendment is enacted, a legal basis will be established to recover the secret funds of the New Military Regime, enabling the National Tax Service and prosecutors to accelerate their investigations.

It seems you need to persuade the ruling party. What is the outlook for the bill’s passage?

I do not think this bill requires coordination of opinions between the ruling and opposition parties. There is a national consensus that criminal proceeds accumulated by those who destroyed the constitutional order must be thoroughly recovered. This is the public’s mandate and a national reflection on the military dictatorship that committed tyranny, as well as a reckoning with the past to move toward a transparent and fair society. Any dissent would be rather anachronistic and unreasonable.

The Democratic Party has adopted the family of Roh Tae-woo as witnesses for the National Assembly inspection...

We must acknowledge that former President Roh’s secret funds exist in various forms such as nominee holdings, loans, and investments. Furthermore, the scale of the hidden secret funds and how they are managed must be revealed. Most importantly, they must promise the public to return these secret funds to the state.

What should the National Assembly do after the inspection to reinvestigate and recover the secret funds?

At the National Assembly level, the source of the funds can be identified through a state audit or hearing. However, tax evasion allegations of the military regime family have already been exposed in broad daylight through Chun Woo-won’s revelations and memos from the divorce lawsuit. First, investigative agencies and the National Tax Service must identify the source.

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