Indonesian Political, Business & Finance News

S. Korean slush scandal, coup probes gather pace

S. Korean slush scandal, coup probes gather pace

SEOUL (Reuter): A South Korean court froze former president Roh Tae-woo's assets yesterday as prosecutors investigating kickbacks grilled him and an ex-defense minister over a multi- billion dollar U.S. warplane purchase.

Separately, prosecutors probing a 1979 military coup and a later massacre of civilians issued a written request to former president Choi Kyu-hah yesterday to appear for questioning.

Choi was caretaker head of state when Chun Doo Hwan launched the coup that later thrust him to power. Chun has been arrested on charges of military rebellion stemming from the putsch.

South Korea also paraded a captured North Korean spy on Friday as its military went on higher alert over fears that Pyongyang may be tempted to make mischief because of political turmoil in Seoul and its own food crisis.

Prosecutors have been examining a decision during Roh's term to buy 120 F-16s from General Dynamics, reversing a plan to buy F-18s from McDonnell Douglas.

General Dynamics was mostly acquired in 1992 by Lockheed Corp, which merged with Martin Marietta this year to form Lockheed Martin. Kim Yong-ho, vice president for the Seoul office of Lockheed Martin, denied any wrongdoing.

"We have not been involved in any unethical or illegal business in connection with the contract," Kim, who headed General Dynamics in Seoul at the time, said by telephone.

"We will actively cooperate with prosecutors' investigations in the hope the whole truth will be revealed."

An official with the Seoul District Criminal Court said an order was issued freezing Roh's property rights and bank accounts unearthed by prosecutors.

Roh, who along with seven chairmen of major corporations was indicted on Tuesday on bribery charges, owns a Seoul mansion and has other real estate investments. He has confessed to amassing a US$654 million slush fund during his 1988-93 term in office.

Prosecutors have charged Roh with accepting bribes worth $369 million, and say they have accounted for $548 million of his ill- gotten money. Under South Korean law, Roh could have his assets seized upon conviction. His trial starts on Dec. 18.

Former defense minister Lee Jong-koo was brought in for questioning over the F-16 deal, reached in 1991 as part of a $18.2 billion military build-up. Lee held office from 1990-91.

Roh was also quizzed by prosecutors over the General Dynamics deal and said the decision to buy F-16s was based on considerations over South Korea's terrain and cost, the domestic Yonhap news agency said. He denied taking money, it added.

Meanwhile, a prosecution official said by telephone a written request had been issued to former president Choi asking him to appear as a witness to answer questions over the 1979 putsch and massacre at Kwangju in May 1980.

Choi was caretaker head of state following the assassination of president Park Chung-hee in October 1979. He was toppled after Chun led the military coup in December 1979.

South Korean media have quoted Choi's aides as saying he would not comply with any summons because of ill health.

Prosecutors resumed questioning Chun on Thursday over the coup and massacre, but no details were available. Chun, who could face the death penalty if convicted of mutiny, had not been quizzed since a marathon grilling the day of his arrest.

Earlier yesterday, 33-year-old North Korean agent Kim Dong- shik said his mission when he was caught in October was to bring home two colleagues. He said he had successfully accomplished a similar mission in 1990.

He was captured after a shootout with security forces in the country's southern hills. His companion escaped the gunfight with a minor flesh-wound but was killed in a second clash with troops and police several days later after a massive manhunt.

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