Justice Minister Corners Chief Prosecutor over Hedge Fund Scandal.
Justice Minister Choo Mi-ae defended her decision to remove chief prosecutor Yoon Seok-youl from the investigation into the Lime hedge fund scandal.
Speaking at the parliamentary audit of her ministry on Monday, Choo struck back against Yoon, who claimed that the chief prosecutor is not a subordinate to the justice minister.
“I have seen various remarks at the audit by the chief prosecutor through the media. He crossed the line as chief prosecutor, who is supposed to remain politically neutral. I am very sorry and I am embarrassed as his commanding supervisor. I would like to offer my apologies.”
The prime suspect of the hedge fund scandal claimed earlier this month that the prosecution is not properly investigating opposition politicians and prosecutors he bribed, and that he was offered bail in exchange for incriminating testimonies against Kang Ki-jung, former presidential senior secretary for political affairs.
Justice Minister Choo then removed Yoon from the chain of command on the investigation, suspecting that the prosecutor general is protecting his fellow investigators and opposition politicians the hedge fund allegedly lobbied.
“On the other hand, allegations of ruling party lawmakers were reported in the probe stage via the anti-corruption division. Thus, it is lawful for the justice minister to exercise command over the law enforcement’s investigation as there was significant suspicion. It was necessary and urgent.”
During the parliamentary audit of the prosecution last week, Yoon said he will obey Choo’s instructions but questioned if she can demand that he recuse himself from the case.
“This is the talk of people serving time after receiving long sentences for committing serious crimes. This is often the case, and this person is looking at a long sentence, a really long sentence, and I think it's irrational to strip the prosecutor general of command over a case and attack the prosecution based on this one person's claim.”
Lime Asset, Korea’s once-largest hedge fund, failed to return one-point-six trillion won, or one-point-four billion dollars, to investors amid a financial fraud investigation earlier this year.
Choo also said the justice ministry will launch a probe into why Yoon prematurely dropped the investigation into another hedge fund scandal surrounding Optimus Asset Management when he was the head of the Seoul central district prosecutors’ office.
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