Search continues for fugitive South Korean tycoon

SEOUL, South Korea
(March 6, 2001 10:04 a.m. EST ) - Prosecutors said Tuesday they received a court warrant to arrest Kim Woo-choong, the former chairman of South Korea's troubled Daewoo conglomerate who is believed to have fled the country.

Kim is the alleged mastermind of the largest business fraud in South Korea's history. Prosecutors accuse him of obtaining $20 billion by diverting Daewoo funds and securing illegal loans, and funneling at least $8 billion of that amount to an account allegedly used for bribery.

While Kim has not been formally charged, the court is allowing prosecutors to arrest him for investigation after Kim did not return to the country following a request through his attorneys to do so. Along with fraud and embezzlement, prosecutors are accusing Kim of violation of foreign-exchange laws and suspect him of bribery.

"Our next step is to ask Interpol to help find Mr. Kim's whereabouts," said a prosecution spokesman, speaking on customary condition of anonymity.

In early February, seven former Daewoo executives were arrested for fraud, embezzlement and other alleged financial misdeeds.

But investigators were in the dark about Kim's whereabouts. Local media have speculated that he is in numerous places, including Sudan, Morocco and New York.

Government critics questioned whether the government is reluctant to pursue 65-year-old Kim, given suspicion that he may have showered officials with favors.

The government has denied the allegation, saying South Korean embassies worldwide were looking for Kim.

Two government-controlled creditor banks said Tuesday that they would search for Kim's hidden properties, such as real estate, for seizure.

Daewoo almost collapsed amid the 1997-1998 Asian financial crisis before its creditor banks came to its rescue with fresh loans.

The conglomerate, which had interests in automaking, shipbuilding, textiles, electronics and other goods, is on the block. Half its 25 subsidiaries in South Korea are for sale, and the other half are under the stewardship of creditor banks. Thousands of Daewoo workers lost their jobs in the restructuring.

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