Prosecution Investigated Kim Yong-Chae for the Allegation of Bribery

The special division of the Incheon District Office is investigating an allegation that Kim Yong-Chae, the vice-president of the United Liberal Democrats (ULD), received 200 million won from Mr. Choi (67. under arrestment), the former owner of Seoul Light Metals in Gojan-dong, Namdong-ku, Incheon, along with a favor that he would be able to receive the public funds. The prosecution is also investigating an allegation that two ULD members, including a ULD district party leader known as K who connected Mr. Choi with the ULD vice-president Kim, received money.

Deputy-prosecutor general of the Incheon District Office Kwan Tae-Ho said yesterday, "During the process of investigating Choi who embezzled the public funds, the prosecution attained his testimony that the ULD vice-president Kim received money for bribery."

Mr. Choi reportedly testified to the prosecutor that he gave "210 million won to the ULD vice-president Kim, who was the chief secretary to then Prime Minister, asking for help in getting public funds from the Sungup Corporation (current Korea Asset Management Corporation) and the Korea Credit Guarantee Fund in 1999." Following this, the prosecution plans to investigate the ULD vice-president Kim, who said he would voluntarily appear to the prosecution on 29th, as to whether he received money for helping Choi to get the loans.

It was reported that the Sungup Corporation discounted the Seoul Light Metals` bill amounting to 4 billion won, which was passed on by the Jaeil Bank in October 1999, and it discounted additional bill again.

It was revealed that this company received the total 95 billion won of public funds from the `Arirang structural adjustment fund` and the `Seoul structural adjustment fund`, which were formed to invest into recoverable companies from 1998 to 2000 by the financial organizations. Choi, who was the owner of this company until last November, was arrested on November 14th for the charge of embezzling the company`s funds amounting to 2.9 billion won.

Hee-Jae Park min07@donga.com