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S. Korea to query president's son in loan scandal
February 18, 1997
Web posted at: 9:20 a.m. EST (1420 GMT)SEOUL, South Korea (CNN) -- South Korean prosecutors said Tuesday they intend to question President Kim Young-sam's son in the growing Hanbo Steel loan scandal.
Kim Hyun-chul, the president's second son, filed a libel complaint earlier Tuesday against six opposition politicians he says have defamed him with allegations that he played a key role in brokering loans to Hanbo, which collapsed under a $6 billion debt on January 23.
Prosecutors said they intended to investigate the younger Kim's complaint, but would also look into the allegations against him.
"The prosecution will decide exactly when to summon Kim Hyun-chul after reviewing his complaint," a prosecution official told Reuters.
The criminal complaint was filed against one opposition National Congress for New Politics party official and five opposition legislators, including spokesman Chung Dong-young and his deputy Sul Hoon.
Kim, 38, did not include South Korea's second opposition party, the United liberal Democrats, in his suit, although that party has also implicated him in the loans-for-kickbacks scandal.
The president's son denies any connection to Hanbo, although 10,000 copies of his biography were found in a Hanbo warehouse on Saturday, fueling the speculation about his association with the failed company.
The National Congress party ripped Kim Hyun-chul's action.
"The whole public has questions for him," the party said in a released statement. "If he is so innocent he should appear at a parliamentary hearing to answer questions over the loans."
South Korea's parliament announced Monday it would begin its own investigation into the Hanbo scandal.
A cabinet member, three ruling party legislators, an opposition party legislator, two bankers and the founder and a former executive of the Hanbo Group conglomerate have already been arrested in the scandal.
Reuters contributed to this report.
Related stories:
- CNNfn: Hanbo scandal grows - Feb. 5, 1997
- Korean businessman arrested in growing scandal - January 31, 1997
- S. Korean police raid bankrupt company offices - January 28, 1997
- Bankruptcy scandal adds to S. Korean government woes - January 27, 1997
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