First lady kin tied to bid for accused tycoon

Lee Sung-ho, first lady Lee Hee-ho's youngest brother, invited influential politicians to the opening of a technology start-up, sources close to the firm said Thursday.

The involvement of Mr. Lee and the presence of the politicians was allegedly intended to persuade potential investors to put money into the firm. The company's owner, Song Bong-seop, later fled overseas with much of the investors' money.

Mr. Lee reportedly made a speech touting the company, Handycom Korea, in August 2000 and openly asked investors to help Cha Jung-deok, then CEO of the firm. Mr. Lee was a long-time acquaintance of Mr. Cha's, the sources said.

The first lady's brother also invited members of the governing Millennium Democratic Party and Kim Yoon-ki, a former construction and transportation minister, to the opening; Prime Minister Lee Han-dong sent flowers to congratulate the company on its launch.

The opposition Grand National Party criticized Mr. Lee for openly soliciting capital for the company. The opposition party also requested an independent counsel to study the case, which the Blue House immediately rejected.

In May 2001 Handycom Korea was found by the government to have fabricated its sales records. In November, Mr. Song left the country with an unknown amount of the money invested. Mr. Song is still wanted by investigators, who said they do not know where he is.

by Kim Sung-tak