S. Korean Minister Quits; Probe of Loan Scandal Widens
A South Korean loan scandal threatened to engulf President Kim Young Sam in an election year as the home minister quit and another of Kim’s trusted associates was questioned by prosecutors Wednesday.
Kim cannot run for a second term, but with the scandal swirling closer to him and his party’s power center, he will have less room to maneuver as he seeks to anoint a successor ahead of the December elections.
Home Affairs Minister Kim U Sok became the first Cabinet casualty of the scandal, which involves more than $5.8 billion in loans to failed Hanbo Iron & Steel Co. and is reaching deeper into the president’s inner sanctum.
Prime Minister Lee Soo Sung indicated that he too was willing to resign amid media speculation that the whole Cabinet would have to go.
The home minister is being questioned by state prosecutors on suspicion of taking kickbacks in connection with loans to Hanbo but has not been charged with any wrongdoing.
Hwang Byung Tai, a legislator in the ruling New Korea Party, was also being questioned.
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