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South Korean president apologizes for scandal, banishes son
Government reorganization expected
February 25, 1997
Web posted at: 8:41 a.m. EST (1341 GMT)In this story:
SEOUL, South Korea (CNN) -- Trying to salvage the final year of his presidency, South Korea's Kim Young-sam apologized Tuesday for a bribery scandal and banished a controversial son from public life.
Kim made the apology in a somber nationally televised speech marking the fourth anniversary of his inauguration, saying he was in "agony and sorrow" over aides' involvement the scandal over dubious loans to the failed Hanbo Steel Co.
The affair has landed three of Kim's close associates in jail and undermined his standing with the public.
"I take full responsibility ... I apologize deeply."
-- Kim Young-sam
After the president's speech, all 12 of his senior secretaries as well as key leaders of the governing New Korea Party offered to resign.
Resignations also were expected to be offered by his Cabinet.
Information Minister Oh In-hwan said the president would extensively reorganize his government.
Kim, who took office in 1993, also apologized for a labor law rammed through parliament last December in a way that recalled the tactics of his military predecessors and sparked a month of strikes.
For some, apology isn't enough
Opposition parties welcomed Kim's apology, but said he failed to resolve the crisis by ignoring their demand for an independent prosecutor.
Student radicals who demand Kim's resignation also were unsatisfied. Hours after the apology, they clashed with riot police in the first campus violence since a crackdown last year on student activism.
Police fired volleys of tear gas at about 700 students hurling rocks and shouting "Down with the Kim Young-sam regime" at Seoul's Hanyang University, witnesses said. At least five students were detained.
The scandal; the outcome
Prosecutors claim banks pressured by politicians offered huge loans in return for kickbacks from Hanbo, which racked up $5.8 billion in debts before going under on January 23.
Kim's second son, Hyun-chul, was questioned last weekend about the scandal and cleared of wrongdoing. Opposition politicians labeled the probe a whitewash. In his speech, Kim said he would bar his 38-year-old son from social activities until his presidency ends.
Hyun-chul later said he would resign from all posts, and media reports said he might leave the country for a spell.
A prosecution official said Hyun-chul withdrew legal action on Tuesday against opposition politicians he said had defamed him in connection with the scandal.
Prosecutors last week indicted 10 people including a Cabinet minister, politicians, top bankers and the founder of the Hanbo Group, the country's 14th biggest conglomerate.
Seoul Bureau Chief Sohn Jie-Ae and Reuters contributed to this report.
Related stories:
- S. Korea to query president's son in loan scandal - February 18, 1997
- CNNfn: Hanbo scandal grows - February 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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