Pressure On Inquiry Linked to MDP Figure

Gangsters were involved in a stock dispute involving a dot-com start-up, and Representative Lee Sang-soo, the ruling-party floor leader, wielded pressure on prosecutors during the course of an investigation into the case, the opposition Grand National Party asserted Tuesday.

According to the largest party in the parliament, Seo Seung-mo, president of C&S Technology, attempted to steal shares from a certain Mr. Park who held 500,000 shares in C&S.

Prosecutors summoned Mr. Seo in February for questioning, and the ruling-party floor leader asked prosecutors to let him go, the opposition party alleged.

C&S is a semiconductor subcontractor. Its share price at its initial public offering in April last year was 23,000 won.

Mr. Park said he struck an agreement with Mr. Seo in March 1999 to swap a building he owned for C&S shares. He filed a complaint against Mr. Seo after Mr. Seo insisted on nullifying the agreement when the share price rose, and reinforced his demand with threats from gangsters, Mr. Park said.

In a conversation tape-recorded by Mr. Park, a senior prosecutor at the Seoul District Court's eastern branch, who directed the investigation into Mr. Seo, tells Mr. Park that the ruling-party floor leader had called him numerous times asking him when he was going to release Mr. Seo. The prosecutor said Tuesday, however, that he had told the ruling party floor leader it was difficult to comment on the case.

Mr. Lee, the floor leader, explained that Mr. Seo is the brother of a close friend's wife, and that he only had asked the prosecutor to treat the case in a fair manner.

Representative Lee Won-hyung of the Grand National Party called on the justice minister to conduct a thorough investigation into the case and to immediately arrest Mr. Seo.

Mr. Seo maintained that the threats with gangsters were an accident prompted by Mr. Park's "rude" remarks. He said he was trying to get back 20,000 shares from Mr. Park because they were given as a form of gratitude to people who helped him in investing in stocks.

by Lee Soo-ho