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Law and disorder in South Korea
By David Scofield

SEOUL - South Korean President Roh Moo-hyun is right to talk of equal and fair application of the law as a primary objective of his administration. For decades the police, prosecutors and courts have been used as instruments of government power, with little autonomy from narrow political agendas. But while the rhetoric is heartening, convincing the people of South Korea that the law will be applied equally and fairly will take a lot more than words.

Since 2000, Kim Woo-choong, the founder and former chief executive officer of the Daewoo Group, has lived comfortably abroad with the estimated US$2.5 billion he embezzled from the group prior to its collapse beneath a mountain of debt estimated at $80 billion.

In spite of the rhetoric and an official request to Interpol, the South Korean administration seems less than enthusiastic to have him returned. Kim, it is rumored, kept detailed records of the millions he paid to various politicians and senior bureaucrats during his years of bilking billions from Daewoo. Since many of them are still in office, few want him back.

Closer to home, in a palatial villa in an exclusive Seoul neighborhood, lives South Korea's fifth president, Chun Doo-hwan, who was behind a political slush fund worth about $900 million. Chun was sentenced to life in prison in 1996, and ordered personally to repay more than $150 million to the state.

But in the spirit of "national harmony", then-president Kim Dae-jung pardoned him in late 1997. Today, Chun lives very comfortably, steadfastly refusing numerous court orders demanding repayment. In a court appearance in June, Chun produced a bankbook showing a balance of about $225. His riches are all gifts, he claims.

Two of Kim Dae-jung's sons have been sentenced to jail for influence-peddling and tax evasion, but few expect them to stay in for long, and fewer still expect that any fines they pay will make a dent in the fortunes they are rumored to have amassed. Last month, Roh was quoted as saying that the charges against his predecessor's sons were "unconvincing".

The accounting scandals and indictments over slush funds, bribery and graft are served up daily by the South Korean press, but with little follow-up commentary, so even on that rare occasion when stern punishment is meted out, the public, based on experience, assumes that sentences are either probationary, are soon to be shortened in an unpublicized appeal, or will be served under house arrest.

On the odd occasion when high-profile individuals do go to jail, there is always the pardon - a presidential privilege that has acted as a get-out-of-jail-free card for more than a few corrupt politicians and business people.

In the summer of 2002, less than six months before the end of his tenure, former president Kim pardoned more than 5 million people, including former Daewoo executives who had just been sentenced for their role in the massive fraud and embezzlement scheme. Also included in the package, 4.8 million people guilty of traffic offenses, including habitual drunk driving, were also fully pardoned. In keeping with tradition, President Roh pardoned more than 151,000 people, including 125,000 civil servants, on liberation day last month.

The post-1998 South Korean economic recovery, largely dependent on massive liquidity, low interest rates, and an explosion in consumer credit, allowed entrenched institutional weaknesses to remain hidden. Now, as the tide of economic growth recedes, the foul reality of corruption and collusion is exposed, and the much-talked-about corporate-government reforms seem to have been just that, talk.

According to the Ministry of Finance and Economy, of the $136 billion of taxpayers' money that was used to recap banks and bail out failing companies, at least $14 billion is unrecoverable. Sources close to the ministry worry that it may eventually be three of four times as much; at least $87 billion is still outstanding. That gross mismanagement of public funds took place is not in dispute, but far from inquiries, trials, and imprisoned officials, the issue of lost billions passes with little official comment.

Illegal strikes and demonstrations are up markedly over this time last year, and far from being prosecuted and imprisoned, groups that use violent and illegal tactics are having their demands met. Recent illegal strikes, often launched before negotiations begin in earnest, have resulted in wage increases averaging four to five times the inflation rate, among other perks.

Cynicism and contempt for the police, the courts, the corporations and the state are increasing. Stories abound of violent attacks on police and other government officials, as equal application of the law is looking increasingly like no application of the law. It's hard to challenge public contempt when those who rule show little respect for the nation's legal institutions.

The head of Roh's own Millennium Democratic Party (MDP) used extended sessions of the assembly to avoid three subpoenas demanding that he surrender to prosecutors and answer bribery allegations. And he isn't alone. Three others, Park Joo-sun of the ruling MDP and Park Myung-hwan and Park Jae-wook of the opposition Grand National Party (GNP) also spent the summer ducking subpoenas. South Korean law makes it very difficult for assembly members to be arrested while in session. The National Assembly has remained in session all summer, breaking for only 24 hours on August 31. Local papers reported that three of the four fled into hiding for 24 hours, and returned when the assembly resumed sitting the next day. The fourth, a long-serving member of Roh's party, stayed home. No arrests were made.

Talk of applying the law fairly and equally is meaningless when the people see the rich and powerful flout the law and profit thereby. As former American Chamber of Commerce president Jeffrey Jones was fond of saying, "Some powerful people need to go to jail, the public need to see them in jail, and they need to see the ill-gotten gains forfeited."

If the president is serious about applying the law equally and fairly, then his party, the opposition and the National Assembly might be a good place to start.

David Scofield is a lecturer at the Graduate Institute of Peace Studies, Kyung Hee University, Seoul.

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Sep 16, 2003



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