Spy agency said to send funds to North in '00

Kim Moon-soo, a lawmaker of the opposition Grand National Party, said Friday that the National Intelligence Service remitted 400 billion won ($308 million) in June 2000 to North Korea to secure that year's historic summit.

Other opposition members said earlier this week that the state-run Korea Development Bank gave an emergency loan of $400 million to Hyundai Merchant Marine Co., which was then sent to the North.

"Hyundai Merchant Marine associates handed 400 billion won by check to the intelligence agents at the orders of company officials," Mr. Kim said at a meeting of party lawmakers. "The agency remitted the money to the North's overseas accounts, according to schedule."

Mr. Kim said that accounting managers at Hyundai Marine were bewildered when Korea Development Bank provided 400 billion won in loans that no one had asked for. "The North-South summit, originally set for June 12, was delayed for a day because of several errors that occurred during the course of remittance," he said.

"Park Jie-won, then minister of culture, orchestrated the scheme, and Lee Keun-young, then governor of Korea Development Bank, approved of the loans," Mr. Kim said. He said Mr. Park met an official of the North's Asia Pacific Peace Committee in Beijing to arrange for the remittance.

Mr. Kim's claims differ somewhat from those of another GNP lawmaker. Eom Ho-sung earlier this week said that the Korea Development Bank's emergency loan to Hyundai Marine was transferred to Hyundai Asan and then to the North via overseas accounts operated by North Korean paper companies.

The intelligence agency denied Mr. Kim's accusations and said that there is no way for it to hand money to the North. A Development Bank official also denied the charges, saying Hyundai Marine had formally asked for the loans. Hyundai has said it used the money to pay debts and rent ships.

But Mr. Kim said he could substantiate the claims, implying that the GNP may have more evidence at hand. He charged that the Blue House, the intelligence agency, Korea Development Bank and Hyundai had maneuvered behind the scenes to exploit the Korean people's yearning for reunification.

The allegations, if confirmed, will tarnish the image of the President Kim Dae-jung, who won the Nobel Peace Prize in 2000 for bringing the summit.

The Blue House, which had maintained a relatively low profile Thursday, turned to the offensive Friday. "The GNP must take responsibility for its groundless accusations," its spokeswoman, Park Sun-sook, said. "Everyone knows why the GNP talks such nonsense," she added, suggesting that the opposition was raising false charges to obfuscate draft-dodging allegations about the sons of its presidential candidate, Lee Hoi-chang.

"North Korean projects conducted by the Blue House are nothing to be ashamed of," said Park Jie-won, the Blue House chief of staff, who was accused by the GNP of being the prime mover.

by Lee Sang-il