Security agency funds went to politicians

It has been revealed that about 100 billion won from the state intelligence agency was funneled into the then-ruling New Korea Party (NKP) just before the 1996 general elections and that more than 150 party candidates, including former and incumbent lawmakers, had received the slush funds, according to the prosecutors investigating the scandal.

Also disclosed is the fact that the money was part of the state budget funds that the agency had managed.

The central investigation headquarters of the Prosecutor General's Office, headed by senior prosecutor Kim Dae-Woong, reported Wednesday that the Agency for National Security Planning (NSP) had managed a confidential budget fund of 100 billion won to 200 billion won in four to five secret accounts and offered about 100 billion won out of the fund to over 150 parliamentary candidates of the NKP.

The prosecution plans to summon related officials soon and probe the formation of the slush fund, the process of its distribution to the NKP members and the amounts of the money they received. In this connection, the prosecution imposed bans on about 10 persons to leave the country, including former NSP director Kwon Young-Hae, Kim Ki-Sop, former NSP deputy director, and some officials of the Grand National Party (GNP), the successor of the NKP.

The prosecution already has summoned and questioned some former officials of the intelligence agency in connection with the case, it also was learned.

The related prosecution officials said that the investigation team almost has completed its work of tracking down of the bank accounts held by the suspects for the past several months. They also disclosed that the amount of fund delivered to the NKP was found to be around 47 billion won as of October last year but that with the investigation progressing the amount has reached about 100 billion won.

It also was revealed that a considerable number of the GNP parliamentary candidates had received 500 million won or more.

The prosecution found that the NSP had received and used budget funds with unknown objectives even before the inauguration of the Kim Young-Sam administration and the amount accumulated to the level of 100 billion won to 200 billion won.