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CH190 | GSI
🕑 Added 2025-03-05 03:40:00 +0000 UTC[Former President Noh Ki-hoon's Slush Fund Scandal Paralyzes Parliament]
During today’s parliamentary questioning session, opposition lawmaker Joo kyu-hwang of the Minpyeong Party presented concrete evidence regarding former President Noh Ki-hoon's alleged 400 billion won slush fund. He strongly demanded a thorough investigation and the invocation of the National Assembly’s investigative authority, causing a major stir.
Representative Joo claimed that former President Noh had hidden the massive 400 billion won sum by distributing it across 40 bank accounts, each holding 10 billion won.
In response, the ruling party and three other parties unanimously called for the prosecution to conduct a thorough investigation into the former president’s secret funds and for the National Assembly to exercise its investigative powers…
Sitting on the sofa in his study after work, Chairman Park Tae-hong clicked his tongue as he read the evening newspaper.
"If you're going to collect money, you should at least manage it properly. Stashing it in bank accounts? How absurd."
Though the money had been dispersed through borrowed-name accounts and shell corporations, the sloppy management made it easy to uncover. A little digging was all it took to expose the entire scheme.
It was so reckless that when he first received word of the scandal, he had assumed Representative Joo Kyu-hwang had made a rash move, jumping to conclusions in his enthusiasm.
Placing the newspaper down on the table, Chairman Park muttered to himself as he glanced at the large black-and-white photo of Representative Joo printed in the article.
"This is going to cause quite the uproar—not just in politics, but in the business world as well."
If the slush fund scandal led to an official prosecution investigation, it wouldn't just be former President Noh’s camp that faced consequences—corporate leaders who had contributed to the fund would inevitably be caught in the fallout as well.
Feeling frustrated, Park Tae-hong reached for the wooden box on the table, opened the lid, and took out a neatly arranged cigarette.
As he lit the cigarette and exhaled a long stream of smoke—
A knock sounded at the door.
Seok-won stepped inside the study.
"I'm home."
"Good work."
After exchanging greetings, Seok-won turned to leave, but Chairman Park suddenly remembered something.
"Come to think of it, that kid's sharp—his mind works fast."
Not only that, but he had a keen ability to read the tides of change. It might be worth hearing his thoughts on the situation.
"Wait a moment. I want to talk to you. Sit down."
Seok-won tilted his head slightly in curiosity before turning back and taking a seat on the empty sofa to Chairman Park Tae-hong’s right.
"What’s this about?"
Chairman Park lightly tapped the ashes from his cigarette into the crystal ashtray on the table before asking,
"You’ve heard about former President Noh’s slush fund scandal breaking out today, haven’t you?"
"Yes."
He hadn’t just heard about it—he had witnessed Representative Joo Gyu-hwang’s exposé firsthand at the scene.
Still, Seok-won kept his expression neutral and responded with a short answer.
"Well, with all the commotion today, there’s no way you wouldn’t know."
Holding the cigarette between his fingers, Chairman Park continued,
"The index took a sharp dive in the afternoon. I assume your firm suffered some losses?"
"There was some impact, but since we had already liquidated most of our positions, we managed to avoid any major damage."
Chairman Park, who had naturally assumed that an unforeseen disaster like this would have resulted in losses, paused and looked at his son in surprise.
"You sold off your stocks in advance?"
"Yes."
Chairman Park, who had been leaning back, straightened his posture and narrowed his eyes.
"Don’t tell me… you knew this was coming?"
Seok-won shrugged as if the idea was absurd.
"Even the other Minpyeong Party lawmakers were caught off guard by the sudden revelation. How would I have known beforehand?"
"Right… I suppose that makes sense."
Even he had to admit that was a bit of a stretch.
Letting out a short laugh, Chairman Park covered his momentary embarrassment by teasing Seok-won.
"It’s just that you always manage to pull off these ghost-like feats."
"Haha."
"Then what exactly made you decide to sell your stocks?"
"I just had a bad feeling about it."
Expecting a more elaborate explanation, Chairman Park frowned slightly.
"You sold all your stocks just because you had a bad feeling?"
"Yes."
"Huh..."
Chairman Park stared at Seok-won, looking as if he couldn't believe what he was hearing.
"That was really your only reason?"
"Of course, I had my own reasoning behind it."
Seok-won replied in a calm voice.
"Since July, the expansion of foreign investor limits has brought new capital into the market, helping the struggling index make a strong rebound. But the fundamental issues weren’t resolved. Seeing everyone so optimistic and predicting a bull market actually made me uneasy."
Chairman tilted his head slightly and asked,
"What fundamental issues are you talking about?"
"The rapidly growing trade deficit and the weakening yen."
"Hmm."
Seeing his son’s suddenly serious expression, Chairman Park let out a low hum, his own demeanor turning more somber.
Leaning forward slightly, Seok-won continued,
"The Ministry of Finance recently projected this year’s trade deficit to reach 8.5 billion dollars. In a country like Korea, with a small domestic market and an export-driven economy, a rising trade deficit isn’t just a minor concern."
"But isn’t that deficit mainly due to large-scale investments in semiconductor and manufacturing facilities, requiring the import of equipment from abroad?"
Chairman Park countered in a firm tone.
"That’s true. Many companies expanded factories and upgraded equipment, driven by the optimism from the Kobe earthquake and the strong yen, which temporarily benefited Korea’s exports. If exports continued to rise, this deficit, as you said, could be seen as a positive sign. But unfortunately, a major negative factor has recently emerged in the export environment."
Realizing what Seok-won was getting at, Chairman Park immediately gave the answer himself.
"You're talking about the yen’s depreciation, aren’t you?"
"Yes. A weak yen strengthens Japanese companies’ competitiveness, which inevitably hurts Korea’s exports."
With the cigarette still between his lips, Chairman Park gave a heavy nod.
"If companies have already poured huge sums into expanding facilities but exports start declining, their earnings will inevitably take a hit. And if that happens, stock prices won’t hold up either."
"So, that’s why you sold your stocks?"
"Since stock prices were inflated beyond their fair value due to a specific event, it was best to sell before they dropped again."
Seok-won replied as if it were the most obvious thing in the world, casually shrugging his shoulders.
"I expected the market to decline soon, but I didn’t anticipate that former President No’s slush fund scandal would be the catalyst."
Of course, he had anticipated everything and made his moves accordingly, but he couldn’t exactly say that out loud. So, he remained composed, pretending to be just as caught off guard as everyone else.
Unaware of this, Chairman Park Tae-hong quietly reflected on his son’s explanation. He couldn't help but admire Seok-won's innate ability to sense the flow of money and predict future trends.
"He really does have a natural instinct for making money."
Chairman Park Tae-hong stubbed out his nearly burned-out cigarette in the ashtray before asking,
"That aside, how do you think this situation will unfold?"
"It’s highly likely that the president will soon order an official investigation, leading to former President Noh and his close associates being questioned by the prosecution."
Hearing this, Chairman Park Tae-hong’s expression grew serious.
"That could be like kicking a hornet’s nest. Do you really think the Blue House will take that risk?"
Seok-won responded calmly, explaining why they had no choice.
"This time, unlike previous scandals, concrete evidence has surfaced. More importantly, if they try to cover it up, the president’s approval ratings—already plummeting due to a string of major disasters—could hit rock bottom, leading straight to a lame-duck presidency. They don’t have any other option."
"The Blue House is definitely in a tough spot right now."
Chairman Park Tae-hong muttered to himself, folding his arms.
"If they handle this poorly, all of the president’s efforts to distance himself and the ruling party from the military regime could be completely undone. That means they’ll have no choice but to take a hardline stance."
"Exactly."
When President Kim Seong-gyu took office, he had aggressively pushed for financial reforms and purged the influential military faction known as Hana-hwe. While these moves were meant to break with past corruption, they were also aimed at erasing the perception that he had colluded with the military regime to gain power.
Still, no matter how much they tried to rewrite history, they couldn’t deny that the current ruling party was formed through a three-party merger—a merger that ultimately paved the way for Kim Seong-gyu’s presidency.
This meant that any revelations about past military regime dealings would be extremely uncomfortable for both the Blue House and the ruling party. If possible, they would prefer to avoid them altogether.
"The real issue is that once the investigation begins, former President Noh’s slush fund scandal could spread beyond him, implicating the entire political establishment—regardless of party affiliation."
Hearing this, Chairman Park Tae-hong furrowed his brows.
"What do you mean by that?"
"Of course, he must have pocketed some of the money for himself, but think about it—where else would such a massive sum have gone during his presidency?"
"…!"
"A significant amount must have flowed into political circles. That includes the opposition party as well."
Chairman Park Tae-hong’s eyes widened in surprise.
"Are you saying opposition figures took money too?"
"Politics always requires funding. And considering that one of the ‘Three Kims’ is almost certain to become the next president, wouldn’t Noh have wanted to secure a comfortable post-retirement life by hedging his bets?"
"That makes sense. With so much at stake, he must have felt uneasy about his future."
Chairman Park Tae-hong chuckled bitterly, acknowledging the logic.
"Once the prosecution starts digging, former President Noh will likely reveal this himself to protect his own position. He’ll argue that the funds weren’t for personal use but were actually a form of ‘governing funds,’ trying to shield himself from punishment."
"You really think he’d say that outright?"
"It’s a warning—if they come after him, he’ll make it clear that neither the Blue House, the ruling party, nor even the opposition will walk away unscathed."
Once again, Chairman Park Tae-hong quickly grasped the implications.
"So, he might try to drag everyone down with him."
"Exactly."
"Damn…"
Chairman Park Tae-hong frowned, as if he were developing a headache.
"If we’re not careful, this could turn out to be even more serious than I expected."
Seok-won subtly observed his father’s expression before cautiously asking,
"Did we, by any chance, give money to former President Noh?"
For a moment, Chairman Park’s expression hardened. He stared at his son in silence before finally answering in a subdued voice.
"Yes. Someone from the Blue House came directly to collect it. We handed over a little more than 10 billion won in CDs and cash."
At this point, there was no reason to hide the truth. More importantly, he trusted Seok-won.
According to Seok-won’s pre-regression memories, the prosecution’s investigation had eventually revealed that nearly every major conglomerate ranked within the top 50 had contributed to the slush fund. He had already assumed Daeheung Group would be among them.
So rather than appearing shocked, he simply nodded.
"I figured as much."
Chairman Park’s eyes flickered with interest at his son’s calm reaction.
"You already suspected it?"
"To amass a slush fund worth hundreds of billions of won, they couldn’t have relied on just one or two conglomerates. And as unfortunate as it is, running a business in Korea means you can’t survive without currying favor with those in power."
"Yes… It’s shameful and dishonorable, but you’re right."
"If this escalates, you may be summoned for questioning. It would be best to prepare in advance."
"Once they start digging into the slush fund, they’ll want to trace where the money came from. It’s inevitable."
Chairman Park nodded grimly.
"When that happens, just tell them exactly how much you gave. Don’t try to hide anything."
"Are you telling me to admit guilt?"
Chairman Park narrowed his eyes, but Seok-won responded in his usual even tone.
"Even if you’re found guilty, considering how many business leaders were involved, most will likely receive non-custodial indictments or suspended sentences. If they were to impose actual prison terms, every single chairman of the top 50 conglomerates would have to go to jail. That’s simply not feasible."
Unless the government intended to send the entire Korean economy into a downward spiral, that wasn’t going to happen.
Chairman Park let go of his indignation and listened carefully to his son’s reasoning.
"So, rather than trying to cover things up, it would be better to come clean now and move forward."
"Tsk…"
Leaning back in his chair, Chairman Park let out a long, deep sigh, his expression clouded with contemplation.
"You must be tired, so you should head out."
Seok-won was about to say something but, noticing the deep concern on Chairman Park Tae-hong’s face, he decided to stay silent.
"Yes."
He got up from his seat and, as he was about to close the study door behind him, he caught a glimpse of Chairman Park once again with a cigarette in his mouth, exhaling a cloud of smoke.
The deep lines on his forehead reflected the weight of his thoughts.
As Seok-won stared at the firmly shut door, he muttered bitterly to himself,
"It must be tough for him, but it’s something that needs to be dealt with eventually, so there’s no avoiding it."
TL/n -
Roh Tae-woo (노태우) was the 6th President of South Korea, serving from 1988 to 1993. His presidency is notable for both his role in South Korea's political development and the significant corruption scandal that emerged after he left office.
- After his presidency, Roh Tae-woo faced allegations of massive corruption. It was revealed that he had accumulated an illicit slush fund of about $600 million (600 billion won) through bribes and kickbacks from major businesses, political donations, and illegal deals during his time in office.
- In 1995, following an investigation by prosecutors, Roh was charged with corruption, embezzlement, and treason. He was accused of receiving these funds as part of a system that also involved former president Chun Doo-hwan.
- Roh was convicted in 1996 and sentenced to life imprisonment. However, his sentence was later reduced, and he was pardoned in 1997 by President Kim Dae-jung as part of a reconciliation process aimed at stabilizing the country after years of political tension.
