S. Korea's GNP admits trying to raise loans<\/p>\n
SEOUL (AFP): South Korea's majority party admitted yesterday
\nto trying to raise massive underground loans, triggering
\naccusations it was seeking to buy votes in the Dec. 18
\npresidential poll.<\/p>\n
A Grand National Party (GNP) spokesman said the party had
\ntried to raise 50 billion won (US$28 million) in kerb loans by
\nmortgaging real estate, but denied the money was to be used for
\nelectioneering.<\/p>\n
The news came only six days ahead of the polls in which the
\nGNP candidate, Lee Hoi-Chang, is fighting a close battle with
\nopposition's Kim Dae-jung.<\/p>\n
\"We have been harassed by lenders and construction companies,
\nurging us to pay back our debts before the election. We also need
\nmoney to pay overdue salaries to our staff,\" the spokesman told
\nAFP.<\/p>\n
The admission came after a kerb loan dealer called a press
\nconference yesterday and claimed a colleague had been approached
\nby GNP officials seeking to raise money.<\/p>\n
He presented recordings of conversations between the colleague
\nand GNP officials and copies of promissory notes issued by two
\nmid-sized firms and endorsed by party officials.<\/p>\n
Kim Dae-jung's National Congress for New Politics (NCNP) leapt
\ninto the fray, charging that the GNP was trying to raise funds to
\nbuy votes.<\/p>\n
\"Lee Hoi-chang has been preaching so-called 'clean politics'
\nbut he is plotting to buy votes,\" an NCNP spokesman said.<\/p>\n
\"Because of the frozen financial market, business firms are
\nnow having serious problems cashing their own promissory notes.
\nBut the GNP tried to snatch away already-rare liquidity from the
\nmarket,\" he said.<\/p>\n
The NCNP and its ally, the United Liberal Democrats (ULD),
\ndecided to launch a massive TV, newspaper and publicity campaign
\nto lambast the GNP for violating laws on campaigning and fund
\nraising.<\/p>\n
The National Party (NP) of a third presidential candidate,
\nRhee In-je, went a step further and urged prosecutors to
\ninvestigate the 55 billion won worth of promissory notes signed
\nby the GNP officials.<\/p>\n
The episode erupted as the three rival candidates engaged in a
\ncontest over who is better suited for the daunting job of
\nextricating South Korea from the deepening economic chaos which
\nhas required an International Monetary Fund (IMF) bailout.<\/p>\n
Kim Dae-jung, whose earlier call to renegotiate the IMF bail-
\nout terms were met by harsh criticism from the majority party,
\nsoftened his position yesterday and sent a message to IMF head
\nMichel Camdessus, promising to respect the Seoul-IMF agreement.<\/p>\n
Kim, who is the front runner by a slim margin over the
\nmajority party's Lee, also said that once in power, he would ban
\nexpensive private tutoring of school children for 18 months and
\nfreeze tuition for next year.<\/p>\n
South Koreans spend astronomical sums to have children
\nprivately tutored from kindergarten through high school to win
\nplaces in the colleges that will land them the best jobs.<\/p>\n
Former general-turned-president Chun Doo-hwan imposed a
\nsweeping ban on private tutoring when he took power in 1980, but
\nthe ban was lifted by his successor Roh Tae-woo in late 1980s.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/s-koreas-gnp-admits-trying-to-raise-loans-1447893297",
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