$93 Million Funnelled To Opposition Party

Appearing before the National Assembly's Intelligence Committee on Tuesday, Director-General Lim Dong-won of the National Intelligence Service said an internal investigation showed that 119.7 billion won ($93 million) of its budget was withdrawn and funneled to the then-ruling party during the 1996 general election.

"The total sum refers to some 60 to 70 billion won in interest earned on the agency's budgetary money deposited at financial institutions from 1993 to1995, and some 30 to 40 billion won in unused budget that was not returned to the government," Mr. Lim said.

He explained in detail the transfer of the spy agency's funds to the political party.

He said the money was funneled in three stages. In May 1995, 25.7 billion won was withdrawn from four financial institutions. In October 1995, 14 billion won was withdrawn from Korea Development Bank and Kookmin Bank and two other investment and trust companies. In January 1996, 80 billion won was withdrawn from seven financial institutions including H&CB.

Mr. Lim, who returned Saturday from a much-disputed visit to Washington, briefed legislators on the differences between the U.S. and South Korea on their stances toward North Korea.

He said that he met with 10 North Korea analysts with the U.S. Central Intelligence Agency for two hours.

"The differences between Seoul and Washington lie in evaluation of the information at hand," he said.

"The United States uses western barometers in gauging changes in North Korea, whereas we understand the way of thinking and sentiments of our Northern brethren."

by Lee Jung-min