The South Korean government approved a parliament bill on Wednesday to appoint an independent counsel to investigate allegations that President-elect Lee Myung-bak was involved in financial fraud in 2001, the Presidential Office said.

South Korean President-elect Lee Myung-bak (L) of the conservative main opposition Grand National Party waves his hand to supporters in Seoul, South Korea, Wednesday, Dec. 19, 2007.

Following the approval, South Korean President Roh Moo-hyun will name an independent counsel in early January at the recommendation of the head of the Supreme Court, Lee Yong-hun.

Under the parliament bill, the independent counsel will launch investigation into the fraud allegation around Jan. 10 and complete an initial investigation by Feb. 17, shortly before Lee's inauguration on Feb. 25.

According to local media, the independent counsel will investigate whether Lee set up the now-defunct investment consulting company BBK and was a collaborator in the stock price-fixing and embezzlement allegedly committed by Kim Kyung-joon, who is already under arrest.

Kim was indicted on Dec. 5 on charges of stock price manipulation, embezzlement and document forgery related to the BBK, while prosecutors said they found no evidence linking Lee to the case.

If the independent counsel probe proves Lee's involvement, Lee might face indictment.

Lee, who won the presidential election on last Wednesday, will become South Korea's first president-elect to face a summons and criminal investigation by independent prosecutors.

(Xinhua News Agency December 27, 2007)