The corruption scandal will likely be followed by a string of other similar cases before next year’s presidential election — as was the case in the latter phases of the last two presidents’ terms — hamstringing Lee’s reform agenda, they say.
“This is a symbol of the lameduck presidency in Korea. In the fourth year of the presidency, they are confronted with these kind of bribery scandals ... it always happens,” said Hahm Sung Deuk, professor of political economy at Korea University.
“That is the tragedy of the limitations of the single five-year term of the Korean presidency.”
South Korea, Asia’s fourth biggest economy, will elect a new president at the end of next year and will vote in a new parliament next April. Polls show Lee’s ruling conservatives running neck-and-neck with the main opposition Democrat Party.
Eun Jin-soo, who resigned last week from the Board of Audit and Inspection (BAI), is accused of accepting 70 million won ($64,635) in cash and a diamond worth about 30 million won from Busan Savings Bank.
Prosecutors allege that Eun, who worked for Lee’s 2007 presidential campaign, took the bribes to use his influence with the audit board so it would go easy on the Busan Savings Bank for extending illegal loans and other irregularities.
Eun, himself a former prosecutor, reportedly denied most of the charges against him during 14 hours of questioning from Sunday, saying he received part of the money as a legitimate reward for offering legal consulting, Yonhap news agency said.
“This is a personal blow against the incumbent president because Mr. Eun was close aide to Lee Myung-bak, and he personally appointed him to the board of inspectors,” said Korea University’s Hahm.
South Korean media lamented that the second half of the country’s presidency has increased confusion in state affairs, and warned that administration officials should watch their backs.
“Neither the damage done to the BAI nor his personal humiliation can compare with the impact his case will have on the political community,” the Korea Herald wrote in an editorial.
“It has dealt a deadly blow to the ruling Grand National Party and President Lee, given his connections to them.”
Moreover, Hahm said, as Lee’s power erodes bureaucrats will be reluctant to follow through with presidential initiatives. “Therefore it will be very difficult for the president to implement his agenda,” he said.
After years of efforts to clean up South Korea’s image as a place where bribes and backroom dealings were prerequisites to getting business done, graft cases are still a regular feature of bitter politicking ahead of elections.
The last two presidents watched their sons being prosecuted.
“This is just the starting point. There will be many more bribery scandals within the administration and involving Lee Myung-bak’s close aides,” said Hahm.
South Korea ranks poorly in international corruption surveys alongside developing African and Asian countries. This, however, has not deterred foreigners from pouring money into stocks and other investments.
