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Old 25-10-2016, 06:00 PM
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An honorable member of the Coffee Shop Has Just Posted the Following:

Corruption scandal threatens to derail South Korea’s president


Park Geun-hye is facing the biggest political crisis of her career © Getty
They are the South Korean president’s closest allies. Choi Soon-sil, her long-time confidant, and Ahn Chong-bum have been by the side of Park Geun-hye for decades, offering counsel and advice.

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But now allegations against them of corruption and crony capitalism are snowballing into the biggest political crisis of the president’s career, threatening to scupper her flagship policies and tarnish her legacy.

Prosecutors are investigating claims that Ms Choi and Mr Ahn, senior presidential secretary for policy co-ordination, used their influence to coerce big conglomerates, including Samsung, Hyundai, SK Group and LG Group, into making multimillion-dollar donations into two non-profit foundations.

The allegations have become the focus of a parliamentary audit — which opposition politicians criticise as toothless — and are hampering Ms Park’s efforts to reform labour laws and revive a flagging economy in her 18 months left in office.

Ms Park on Thursday ordered a thorough investigation of the allegations, warning that anyone who committed illegal acts related to the foundations would face “stern” punishments.

“This scandal is a typical example of crony capitalism,” said Choi Jang-jip, emeritus professor of politics at Korea University. “President Park will become a lame duck faster than expected as she has lost public trust.”

This scandal is a typical example of crony capitalism

Choi Jang-jip, emeritus professor at Korea University
The president’s approval ratings, at 26 per cent, are the lowest since she took power in February 2013.

Since Ms Choi masterminded the creation of the Mir and K-Sports foundations, they have collected about Won80bn ($72m) from 53 companies in just a few months. It took a single day to approve their creation — unusually fast for South Korea — and they have won bids for big public projects despite their lack of relevant experience.

The government used the Federation of Korean Industries, a lobby group, to “twist the arm” of leading companies to raise funds, said Bahk Byong-won, chairman of the Korea Employers’ Federation.

Media reports have claimed that the two foundations will be used to finance Ms Park’s post-retirement activities. But no firm evidence has yet emerged to back these or other media claims that Ms Choi had help from the fund to buy property overseas and pay for her daughter’s education. The head of Ewha Womans University stepped down on Wednesday amid suggestions that the school changed its rules to give preferential treatment to Ms Choi’s daughter.

“Are we still living in a feudalistic society?” asked Choo Mi-ae, the main opposition leader. “The president should listen to public opinion. The Republic of Korea is being awarded to the Choi family but President Park keeps ignoring the snowballing allegations. The public’s doubts will keep growing as long as she remains silent over ‘Choi Soon-sil-gate’. She should explain how the funds of the non-profit foundations were used for the Chois like their private assets.”

Ms Park has dismissed the scandal as “groundless slander”, while Mr Ahn, accused of leading the fundraising campaign for the two foundations through the FKI, denies the allegations. Ms Choi could not be reached for comment. The FKI said the companies involved voluntarily donated money to promote Korean culture and sports internationally, though it pledged to improve transparency of the two foundations, which are due to be merged.

Opposition politicians have called for a full parliamentary investigation and for Ms Park to appoint a special independent prosecutor to investigate the case. As the scandal has unravelled, opposition lawmakers have hinted they may boycott discussions of Ms Park’s flagship economic policies, such as labour reform. They may also withhold approval of next year’s budget. Kim Yong-tae, a ruling party lawmaker, said on Facebook: “Who the hell is Choi Soon-sil? She is making the country a mess but is saying nothing. She should tell the public the whole truth.”

Kim Dong-chul, an opposition party lawmaker, said: “President Park is trying to hide her underling’s corruption at a time when the country’s economy and security are in trouble. She should clear all the doubts so that politicians can focus on improving our economy and security.”

There have also been calls for the disbandment of the FKI, increasingly seen as a symbol of collusion between politicians and businessmen. This year, it was accused of funding rightwing civic groups to help them organise pro-government rallies.

The furore has only served to remind South Koreans of the wrongdoing of past authoritarian governments, which often twisted the arm of conglomerates to raise illegal political funds.

Song Mi-kyung, a coffee shop owner, said: “The allegations show that our society is really corrupt and unfair. It is really discouraging that the rule of law is not abided by.”

Lee Hyun-soo, an interior designer, said: “Old habits die hard. It is so disgusting that the bad practices of the past are repeated. The president should step down if the allegations are true. The scandal has made me lose any trust in the government. It is sad that the clock is ticking backward in our country.”


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