Extortion by 3 at Tabloid Alleged

The three staff members of a tabloid that published a sensational series of articles on business improprieties in Koreatown and then allegedly demanded money to discontinue the reports have been arrested on suspicion of extortion, authorities said Monday.

The staffers of Ka Ju News--which during 2 1/2 years of publication has featured headlines such as, “A Scene Out of a Brawling Western: Customers in Korean-Owned Restaurant Are Threatened With Sushi Knife, Then Handcuffed and Beaten”--were arrested Thursday and each booked for investigation of two counts of extortion and two counts of attempted extortion.

Publisher Tae Kyun Kim, 45; chief reporter Sang Suk Kim, 31, and editor Kook Kyun Chung, 32, denied involvement in the alleged extortion.

They said the allegations are attempts at retaliation by disgruntled businesses whose practices were challenged by investigative pieces published in the paper. The three men were released Thursday after posting $5,000 bail each. Arraignment was set for Feb. 8.

Police have been investigating allegations of extortion committed by several Korean-language newspapers since the spring of last year, said Detective Ray Futami.

In a similar but unrelated case, Korean business owners told police in September that the publisher and two staff members of the California Peace News--an infrequent, makeshift newsletter--had pressured advertisers into paying exorbitant rates for unwanted ad space.

When victims refused to pay ad fees, damage to their property or physical threats followed. The three suspects pleaded either guilty or no-contest to charges of extortion and arson and are currently serving sentences of a minimum of one year in jail, Futami said.

Detectives said they have been frustrated by the reluctance of victims to report extortion. In some cases, police said, Korean business owners were resigned to paying the extortion demands, considering them part of the cost of doing business.

Detectives said they are continuing to investigate 15 to 20 non-subscription or “throwaway” publications for possible extortion activities.

Extortion demands ranged from $300 for advertisement space to $36,000 for a seat on Ka Ju News’ Board of Directors, said Detective John Byun.

Five Los Angeles businesses filed extortion charges against Ka Ju News--including the Koreatown restaurant where the sushi-knife-wielding chef allegedly threatened customers, a used-car dealership that reportedly reneged on several warranty contracts and a Korean supermarket whose long-outdated snacks reportedly caused a customer stomach problems.

Reporter Kim, who five years ago uncovered a widespread bribery scandal that led to Los Angeles County district attorney indictments of a state acupuncture licensing official and 47 fraudulently licensed acupuncturists, said Monday during an interview at the newspaper’s office in the 3000 block of West 6th Street that the subjects of Ka Ju’s investigations repeatedly have accused the newspaper of running an extortion racket.

“We are not the criminals here,” Kim said in Korean. “The businesses that we have written about--that have been caught taking advantage of people--are behind the accusations. We just write the truth about what happens in Koreatown.”