GNP attacks think tank and one of Kim's sons

The main opposition Grand National Party on Wednesday released statements lambasting the Kim Dae-jung Peace Foundation for the Asia-Pacific Region, a private research institute affiliated with the president, and his second son, Kim Hong-up, who is the foundation's vice chairman.

"The peace foundation is a private coffer for President Kim Dae-jung's family," said Nam Kyung-pil, the opposition party spokesman.

The Blue House countered the opposition claims.

Mr. Nam charged that the independent counsel's investigation showed that several hundred millions of won have been laundered and funneled to Kim Hong-up through the peace foundation.

"It is highly possible that the bank account held by Kim Sung-whan was used to funnel money to the peace foundation and Kim Hong-up," the opposition spokesman said.

An independent counsel investigating the financial corruption case of Lee Yong-ho, a corporate raider and chairman of the G&G financial holding company, has accused the former director of the foundation of taking a bribe from Mr. Lee. The former director, Lee Soo-dong, has been by the president's side since the 1970s.

In a briefing Monday, the counsel's office alleged that Lee Soo-dong received 44 million won ($33,000) out of the 100 million won withdrawn from Kim Sung-whan's bank account and given to Kim Hong-up. Mr. Kim has said that the money was a retirement payment to Lee Soo-dong.

"Kim Hong-up and Kim Sung-whan have been friends since high school," explained Blue House spokeswoman Park Sun-sook. "They have known each other long enough to lend and borrow money from one another. But," she added, "the money in question had nothing to do with Kim Hong-up."

The Blue House denied that any of the money believed to have been doled out by Lee Yong-ho to buy political influence was funneled to the peace foundation through Kim Sung-whan's bank account. Mr. Park told reporters that Kim Hong-up wrote the Blue House explanation of his and the foundation's finances and delivered it to the office of the Blue House senior secretary for civil affairs.

by Choi Sang-yeon, Chun Young-gi