September 21, 2000
South Korean Aide Resigns Over Loan Accusations By SAMUEL LEN
SEOUL, South Korea, Sept. 20 — In the latest scandal involving high- ranking members of the South Korean government, a close aide to President Kim Dae Jung who was a key player in the government's reconciliation efforts with North Korea resigned today after being accused of using his position to help businessmen obtain substantial bank loans.
While the latest scandal was not expected to affect talks between the two Koreas, the accusations against the minister of culture and tourism, Park Jie Won, and his resignation were a reminder of the collusive ties between businessmen and politicians that plagued South Korea during its pre-reform days. The scandal also meant lost credibility for the administration of Kim Dae Jung in its efforts to get South Korean businesses to adopt management standards.
"The main issue is that many people are linking Minister Park with a scandal that is hindering political affairs, which in turn is slowing down economic reforms," said Kim Il Young, a political science professor at Sungkyunkwan University.
The popularity of the president has surged since his summit meeting in June with North Korea's leader, Kim Jong Il. But at the same time, the president has had to replace a premier and five ministers because of scandals involving money since his inauguration in February 1998. Less than a month ago, South Korea's education minister was forced to resign when he was accused of buying shares of Samsung Electronics at discounted prices while serving as an outside auditor for the company.
Mr. Park's close relationship with the president, which dates from the 1980's, was demonstrated by his appointment as Seoul's top envoy to help prepare for the summit meeting.
But Mr. Park has faced mounting pressure during the past several weeks to resign after several news reports accused him of forcing Hanvit Bank, the recipient of government funding, to extend loans to a businessman.
At a news conference announcing his resignation, Mr. Park denied the accusation and said he will face an investigation by prosecutors.
"I apologize for the concerns I have caused for the president and the people," Mr. Park said. "There must be no more incidents to make the public lose confidence in the government."