Kim's son cleared of Hanbo suspicions
Kim's son cleared of Hanbo suspicions
SEOUL (Reuter): South Korean prosecutors cleared President Kim Young-sam's son yesterday of any wrongdoing in connection with a loan scandal surrounding the failed Hanbo Steel Co.
Senior prosecutor Choi Byung-koog told reporters that Kim Hyun-chul was sent home after being cleared of all suspicions in connection with huge loans to Hanbo Steel Co, flagship of South Korea's 14th largest conglomerate.
"We could not find any wrongdoing by Kim Hyun-chul," Choi said. "He denied all suspicions except for a couple of meetings with two sons of the Hanbo Group founder Chung Tae-soo."
An emotional Kim Hyun-chul apologized for any controversy that involved him. He has said he played no role in the scandal.
"I am very sorry for inadvertently causing anxiety to the people and my father," he said before leaving the prosecution building.
Kim Hyun-chul, the president's second son, was questioned after he lodged a criminal libel complaint on Tuesday against six opposition politicians who alleged he pressured banks to offer loans to Hanbo Steel. The steelmaker racked up US$5.8 billion in loans before being declared insolvent on Jan. 23.
Senior prosecutor Choi said the six politicians from the main opposition National Congress for New Politics would be summoned soon for questioning over the libel complaint.
The six include party spokesman Chung Dong-young, his deputy Sul Hoon and three other members of parliament.
Choi said Hyun-chul had denied the politicians' allegation that he received donations in return for pressuring banks to extend loans to the troubled steelmaker.
Hyul-chul told investigators he had simply met two sons of the Hanbo founder on social occasions but had no other ties with them.
A recent survey by a monthly news magazine showed 66 percent of 1,068 people polled believed Kim Hyun-chul was involved in the Hanbo scandal, and 70 percent thought President Kim himself should be investigated over the case if necessary.
The survey by WIN magazine showed that about 73 percent of those polled believed the president's reform policies had failed. Kim Young-sam launched an anti-corruption drive as his top reform policy shortly after taking office in 1993.
"The aftermath of the latest scandal involving National Assemblymen and administration officials will make it difficult for President Kim to maintain his credibility for the remainder of his term," the Korea Herald said in an editorial.
President Kim, whose single five-year term expires early next year, is due to make a statement next week on the political situation, government officials said.
Speculation that Kim Hyun-chul had close ties with Hanbo was fanned by the discovery last week of more than 10,000 copies of a book written by him in a Hanbo Group warehouse in Seoul.
The opposition has said the books found in the warehouse proved that Hanbo had been a sponsor of Kim Hyun-chul but prosecutors said most local conglomerates had bought his books.
On Wednesday, prosecutors indicted 10 people in the scandal, including Hanbo Group founder Chung and three close associates of the president, on bribery and embezzlement charges.
But opposition parties have demanded a new probe, saying prosecutors have failed to uncover the "real big hands" in the scandal. Both the National Congress and the United Liberal Democratic Party have called for special legislation to allow independent prosecutors to restart the probe.