Manager Says Slush Funds Were Spy Budget's Surplus

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Manager Says Slush Funds Were Spy Budget's Surplus

Kim Ki-sup, indicted on charges of funneling funds from the National Security Planning Agency to former President Kim Young-sam's ruling party in 1996, testified during his trial that the money was part of the agency's budget surplus, and was not taken from its regular operating budget.

Mr. Kim said the agency, now known as the National Intelligence Service, generated a budget surplus of 120 billion won ($150 million in 1996) annually while he served as money manager.

Quizzed about his earlier statement that the funds came from the operating budget, Mr. Kim said he did not want to disclose the fact that the agency does not return its excess budget to the state.

When prosecutors said their investigation revealed that the funds came from the agency's 1995-1996 budget, Mr. Kim said that while the money was originally withdrawn from an account containing a portion of the operating budget, the difference was made up by interest the agency earned from its various bank accounts.

However, prosecutors said that the agency does not keep its money in any one bank account long enough to earn the interest necessary to support Mr. Kim's claims.

The court asked prosecutors to submit the details of the agency's financial transactions and the serial numbers of government checks issued to the agency.




by Lee Ka-young

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