October 26, 1995
Web posted at: 8:30 p.m. EDT (0030 GMT)
From Seoul Bureau Chief Sohn Jie-Ae
SEOUL, South Korea (CNN) -- Shock waves traveled through South Korea's political circles when the chief bodyguard of former President Roh Tae-woo revealed he had managed $63 million in secret political funds for his boss. Thursday, the shock waves were repeated when prosecutors said they had discovered accounts totaling an additional $66 million.
"The money was collected by President Roh and used by him to govern the nation," the bodyguard, Lee Hyun-woo, said last Sunday. Prosecutors say there could be still more slush funds.
Rumors had been rampant about massive amounts of slush money before a full-scale investigation was launched and several other top presidential aides were called in for questioning.
Both ruling and opposition lawmakers have been strongly critical of the former president, demanding that Roh be called in for questioning, prevented from fleeing overseas and even arrested altogether. Reporters have staked out the home of the former president, hoping for a glimpse of others involved in the multi-million dollar scandal. Roh has declined comment.
Economic repercussions have been quick to surface. The bulk of the slush fund handled by the bodyguard was said to have been deposited in accounts under an assumed name at Shinhan Bank, a financial institution which flourished under the Roh administration.
The government promised to investigate where the funds came from. Companies or individuals suspected of contributing to the former president could face harsh tax probes.
The scandal was also expected to rekindle violent student demonstrations. (901K QuickTime movie) Even before the turn of events, students had demanded the punishment of Roh and his predecessor for the bloody oppression of a civilian uprising in 1980.
One name left out so far has been that of the current president, Kim Young-sam, who was hand-picked by Roh as his successor. And with such a direction connection, people are asking how far the investigation can go without implicating the current as well as the past president.
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