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Ex-President Chun to Be Summoned in Slush Fund Probe

Written: 2004-02-11 00:00:00Updated: 0000-00-00 00:00:00

Former President Chun Doo-hwan is coming under investigations over a slush fund scandal.

The Supreme Public Prosecutors' Office Wednesday announced a plan to summon the former president next week for questioning. He is accused of stashing away some two hundred billion won in slush funds collected from corporations during his term in office.

His second son, Jae-yong, was arrested Tuesday on charges of evading 7-point-4 billion won in gift taxes on 16-point-7 billion won he claimed he had inherited from his grandfather on his mother's side.

Prosecution investigators said that they have confirmed that the 7-point-4 billion won came from the slush funds his father amassed while in office in the 1980s. The prosecution is tracking down the source of the money, suspecting that the rest of the funds found in the junior Chun's bank accounts also came from his father.

The prosecution is also investigating how the money was funneled to the younger Chun, and whether the ex-president was involved in laundering the money for his son.

The disgraced former president is accused of hoarding some two-hundred-20 billion won in slush funds and hiding one-hundred-60 billion won of the funds in hundreds of bank accounts under false or borrowed names, or in the form of bearer bonds.

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