Reproduction of Illegal Lobbying for High-speed Train Selection and Money-laundering of NIS Budget

On October 11, 2002, Kim In-tae, the former president of Kyungnam Construction, Inc., will be extradited back to Korea. Kim has been staying in US to avoid prosecution for the corruption-related charges against him. Therefore, the central investigation division of the Central Public Prosecutors’ Office will resume its investigation of the charges involving Kim. Kim is suspected of conducting an illegal lobbying in selection of the high-speed trains for the Kyungboo Line, and of his role in misappropriation of the budget for National Intelligence Service (NIS) for political purposes.

One prosecutor confirmed, “To verify his role in the two cases, we will subpoena him for questioning.”

While tracking the banking records of Choi Man-suk (61, at large overseas), who had worked as a lobbyist for French company Alstome in relation to the illegal lobbying for selection of the high-speed trains in 1999, the prosecution found out that some of Choi’s money was mingled with the NIS’s budget of 94 billion won. (approximately $80 million) Later, some of the mixed was money-laundered through the accounts of Kyungnam Financing.

But the prosecution has not secured any evidence proving that Kim was involved in the money-laundering.

The prosecution, in connection with the money-laundering case, has indicted Rep. Kang Sam-jae of Grand National Party and his trial is pending now.

Rep. Kang is charged with illegally using 119.7 billion won of the NIS budget in conspiracy with NIS’s high-ranking official Kim Ki-sup. In detail, he used94 billion won of the NIS budget for Apr. 11th elections in 1996 and 25.7 billion won for June 27th elections to support New Korean Party and Democratic Liberal Party, then the two ruling parties.

In the meanwhile, Kim is also charged with embezzlement. From Sep. of 1996 to July of 1997, Kim loaned out without any collateral 68.5 billion won to Kyungnam Financing. The loan, however, was from the safe of Sungan Department Store in Masan City of Kyungnam Province, where he was a director. Of the amount, the borrower did not pay back 25.7 billion won. In sum, he neglected his duty as a director of the Sungan Department Store.

Later, the department store filed bankruptcy, and in December of 1997, Kim, faking the passport of his cousin, fled to US via Hong Kong. Thus, he was on the wanted list by the Interpol.

Another charge against Kim is the violation of the law regulating exportation of foreign currencies. He is suspected of having borrowed $800,000 from a casino in Las Vegas in US for gambling purposes from June of 1995 to April of 1997.

On September 24th, the FBI and INS authorities arrested Kim at Dallas, Texas. After the arrest, he has gone through the deportation procedures, and finally will be extradited to Korea on Oct. 11th.

Hoon Lee Myoung-Gun Lee dreamland@donga.com gun43@donga.com