Key Aide to Kim Young-sam Arrested, Asked About Licensing for Cell Service

The Supreme Public Prosecutors Office arrested Lee Suk-chae, minister of information and communication in the Kim Young-sam administration, upon his arrival at the Incheon International Airport Friday and questioned him overnight about his alleged involvement in irregularities during the process of awarding licenses to cellular phone service providers in 1996.

Prosecutors focused their questioning on the allegation that Mr. Lee received 30 million won ($23,000) from LG Telecom, one of the bidders, through a bank account other than his own. They also asked him why he changed the bidding process through which winners were selected.

Mr. Lee flatly denied the allegations saying, "I've never received money from LG Telecom, and the bidding process was conducted in consultation with my colleagues at the Ministry of Information and Communication."

Regarding the rumors that Mr. Lee had contacted the ruling party before returning to Korea and that the investigation is targeted at tarnishing the reputation of the members of the opposition Grand National Party, many of whom were in power during the Kim Young-sam administration, prosecutors said, "Mr. Lee returned to Korea voluntarily because his mother is nearing death."

Kim Young-sam's aides said they will react sternly if the investigation shows signs of becoming a political payback against the former president.

Mr. Lee left for Hawaii in October 1997 as a visiting scholar at the East-West Center. When the investigation into the awarding of licenses to cellular phone service providers began in April 1998, Mr. Lee refused to return to Korea despite repeated requests by prosecutors.

Seven former government officials including Chung Hong-shik, former vice minister of the Ministry of Information and Communication, have been charged in connection with the case, and their cases have remained open pending possible testimony from Mr. Lee.

Mr. Lee and Kim Ki-sup are regarded as good friends of Kim Hyun-chul, the former president's second son. Kim Ki-sup has been arrested on charges of funneling funds from the state intelligence agency to the ruling party during the Kim Young-sam administration.

by Chang Chung-hoon