ULD official is said to accept a payment

The Incheon District Prosecutors Office launched an investigation on Thursday after securing testimony that Kim Yong-chae, vice president of the United Liberal Democrats, had accepted a bribe.

According to the prosecution, Choi Sang-jing, a former chairman of Seoul Metal in Incheon, Gyeonggi province, testified that he had handed 210 million won ($161,500) to Mr. Kim, then chief secretary to the prime minister, who at the time was Kim Jong-pil. Mr. Choi, who was detained last month on a charge of embezzling 2.9 billion won from Seoul Metal, said he had bribed Kim Yong-chae in return for favors in obtaining loans as well as discounting a bill.

The prosecution said its evidence against Mr. Kim included the place where he allegedly received the money and the identity of another witness to the transaction.

The prosecutors office notified Mr. Kim to appear before it on Saturday for questioning.

"Mr. Kim said he had immediately returned the money," said Byun Ung-jun, chief secretary to the president of the United Liberal Democrats, a small party with the third-largest number of seats in the National Assembly.

The prosecutors said Mr. Choi told them that he had spent 300 million won in bribing three other men in addition to Mr. Choi.

Two other party members will be summoned Friday to the prosecutors office. They are said to have introduced Mr. Choi to Mr. Kim after receiving money from Mr. Choi.

The prosecutors office indicted Kang Hyun, a former commissioner of the Incheon regional public procurement service, on Dec. 3 on charges of receiving 10 million won from Mr. Choi.

According to the prosecutors office, Mr. Choi in returned asked Mr. Kang for a loan and a postponement of payment.

The prosecution said it would look into how Mr. Choi spent 2 billion won of the 2.9 billion won he is accused of embezzling. Mr. Choi insisted that he had used it to pay personal debts.

According to the prosecutors, Mr. Choi skimmed the money from 95 billion won of public funds injected into Seoul Metal in 1998 for the purpose of restructuring.

Chung Jin-suk, spokesman for the United Liberal Democrats, said, "There is nothing to comment on, since the allegation has not been confirmed."

Other party members said that the party leader, Kim Jong-pil, had spoken not a word after hearing the allegations against Mr. Choi.

Seoul Metal, founded in 1973, manufactures aluminum products. In the early 1990s the company was recognized as the largest producer of aluminum sash. But it suffered financial losses when it moved it factories to Incheon during the financial crisis in 1997. It was revived with government support. An American investment bank now manages Seoul Metal.

by Chung Young-jin