S.Korean Former Culture Minister Arrested

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Last updated at: (Beijing Time) Thursday, June 19, 2003

S.Korean Former Culture Minister Arrested

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A South Korean special prosecutor team formally arrested Wednesday Park Jie-won, former culture minister, on suspicion of receiving W15 billion ($12 million) in certificates of deposit in April 2000 from Chung Mong-hun, chairman of Hyundai Asan.

Park, who denies receiving the money, is suspected of granting favors in return, such as consideration of a license for Hyundai to operate a casino and a duty-free shop on its cruises to the Mount Kumkang resort.

Park is suspected of demanding the money under the pretext of preparatory costs for the June 2000 inter-Korea summit talks. The request was allegedly made through a businessman, Kim Young-won, in early April 2000. The charges are based on statements made by Chung and Lee Ik-chi, former chairman of Hyundai Securities, who says he delivered the CDs in person. The independent counsel may also accuse Park of abusing his powers by allegedly pressuring the Korea Development Bank to extend an illegal loan of W400 billion to Hyundai Merchant Marine in June 2000.

Park flatly denied that he had received the W15 billion, claiming through an aide that the money was still with Kim, who is in the United States. The special prosecutor has been tracing the funds, expecting it to end up in the hands of politicians, as the money was laundered in the private bond market. Also, reports suggest the possibility of a new charge, that Hyundai created an additional W25 billion in slush funds, and that the total funneled to Park was W40 billion.

Source: Agencies

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