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A former aide to S Korean president asked about deal

A former top aide to ex-president Kim Dae-jung was being questioned yesterday in a scandal over the inter-Korean summit three years ago that has already led to the arrest of one former senior Kim administration official.

An independent counsel summoned Park Ji-won, former presidential chief of staff, to ask him about US$500 million sent to North Korea by South Korea's Hyundai business group just before the June 2000 summit between then-president Kim and North Korean leader Kim Jong Il.

Opposition leaders accuse the previous administration of using some of the money to bribe Pyongyang to agree to the summit. The meeting was the crowning achievement of the former president, who won the 2000 Nobel Peace Prize for his efforts.

Kim left office in February after a five-year tenure.

Hyundai says it gave the money to North Korea before the summit to secure business rights in the North covering tourism, railways and an industrial park.

Kim's former economic adviser, Lee Ki-ho, was arrested last month on charges of influencing a state-run bank to extend loans to Hyundai, which spent the loan on North Korea. South Korean law forbids transfers of cash to the North without proper government approval.

Kim has said his government approved Hyundai's money transfers -- despite "legal problems" -- because they facilitated peace on the peninsula. On Sunday, he repeated that the government's decision should not be subject to judicial review.

No charges have been brought against Kim, who has denied any wrongdoing. It remains unclear whether his aides bypassed formal government procedures to approve the money transfers.

The independent counsel has been investigating under a new law backed by President Roh Moo-hyun, who took office in February. Pyongyang has vehemently protested the investigation.
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