South Korea to probe presidential front-runner

SEOUL (Reuters) - South Korea's parliament on Monday voted for a special counsel to look into securities fraud allegations against the front-runner in this week's presidential election.

Former Seoul mayor Lee Myung-bak, who has about a 30-point lead in polls ahead of Wednesday's vote, was cleared of links to fraud earlier this month when prosecutors said they had found no evidence of wrongdoing by him.

The scandal resurfaced at the weekend when election rivals released a video from seven years ago in which Lee said he had founded the investment firm at the centre of a fraud investigation.

Prosecutors believe the firm, called BBK, bilked investors out of millions of dollars. They charged one of the firm's top leaders with fraud.

Lee has previously said he has had nothing to do with the company, but his opponents said the video proves he was lying.

Analysts said the video could dent Lee's lead but will not alter his standing as the clear favorite. But the probe could hound him in office and hurt his conservative opposition Grand National Party in an April general election when they are hoping to become the majority party.

Lee has denied any wrongdoing and said on Sunday he would accept the special counsel.

Earlier in the day, the justice ministry rejected President Roh Moo-hyun's call to reopen the fraud probe saying prosecutors had already looked into the case.

"We will accept an independent counsel if parliament introduces it," a justice ministry official had said ahead of the vote by legislators.

(Reporting by Jack Kim, writing by Jon Herskovitz)

((jon.herskovitz@reuters.com; +822 3704-5510;, Reuters Messaging: jon.herskovitz.reuters.com@reuters.net)