Chang gets a grilling at hearing

President Kim Dae-jung's nominee for prime minister, Chang Dae-whan, faced searching questions Monday at the National Assembly hearing. Mr. Chang, the former president of Maeil Business Newspaper, was named prime minister-designate after his predecessor Chang Sang, a former university president, failed to receive parliamentary confirmation. The assembly will announce its decision Wednesday. The legislators will likely be free to vote their consciences.

Lawmakers questioned Mr. Chang on numerous issues that ranged from possible tax evasion and embezzlement to huge bank loans, falsification of residence registration and irregular accounting practices.

"Mr. Chang allegedly borrowed money through a special loan offered by Maeil Business Newspaper to its executives and bought shares of Maeil Business TV News and other affiliates," said Hong Joon-pyo and Ahn Kyung-ryul of the opposition Grand National Party. "He repaid the debt with a bank loan of 2.4 billion won [$2 million] he got by pledging the media company's funds as collateral."

A Millennium Democratic Party lawmaker, Ham Seung-huie, accused Mr. Chang of misfeasance in allegedly using company money for personal interests. Mr. Ham accused the prime minister-designate of overdue interest payments.

Mr. Ahn accused Mr. Chang's wife of not paying her health insurance bills. Mrs. Chang was exempted from insurance payments because she is registered as Mr. Chang's dependent, although she had a regular income as a corporate executive. Mr. Ahn further argued that Mr. Chang had evaded taxes on land he inherited in Gimje, North Jeolla province, and Dang-jin, South Chungcheong province.

Ahn Taek-soo, a GNP lawmaker, said Mr. Chang could face up to three years of imprisonment and a 10 million won fine for falsifying the residence registration of his two children to get them into schools in the Gangnam district.

The United Liberal Democrats' Song Kwang-ho said Mr. Chang did not report 900 million won of his property when he was appointed prime minister-designate.

Unlike Ms. Chang, the previous nominee, who maintained an abrasive attitude at her confirmation hearing, Mr. Chang's demeanor was mild. He opened the hearing with an apology for the false address notification. He also apologized for dealing in stocks with his company's money. "You should take into consideration that I dealt in stock as CEO of a media company," he said. He issued a press release that said it was not illegal to borrow from the bank with company funds as collateral because it had been approved by the board of directors.

Mr. Chang expressed a strong desire to serve as prime minister and highlighted his abilities as a successful CEO. "I will build up a sound economy so that the well-being of the people is not threatened," he said. He was well prepared on such issues as unification, foreign relations and economics.

But his answers on various alleged irregularities raised at the parliamentary questioning were at times evasive. He failed to clarify most of the allegations about his dealings in the course of increasing his property. "I am not familiar with the financial affairs of my company, as I handled large decisions and the rest was in the hands of working-level employees," he said.

A GNP lawmaker, Hong Joon-pyo, called on the prime minister-designate to give up his nomination, saying that it was likely that he had violated 11 laws.

by Lee Sang-il, Song Sang-hoon