Weapons of Mass Destruction (WMD)

SLUG: 2-308657 South Korea / Scandal DATE: NOTE NUMBER:

DATE=10/16/03

TYPE=CORRESPONDENT REPORT

TITLE=SOUTH KOREA SCANDAL - L ONLY

NUMBER=2-308657

BYLINE=STEVE HERMAN

DATELINE=TOKYO

CONTENT=

VOICED AT:

INTRO: South Korea's political scandal widened on

Thursday, with the arrest President Roh Moo-hyun's former aide. Steve Herman reports from Tokyo, this is the latest setback this month for the embattled president as he faces a crisis of confidence in his eight-month-old leadership.

TEXT: Prosecutors arrested former presidential secretary Choi Do-sul Thursday in Seoul on charges of bribery and political fund-raising violations.

Mr. Choi is suspected of taking nearly one million dollars in bribes from the S-K Group, South Korea's third largest conglomerate, just a week after Mr. Roh won the presidential election in December.

Critics of the Roh Administration are calling for investigators to also look into allegations Mr. Choi accepted money from other firms in exchange for favors.

/// OPT /// Prosecutors are probing whether the S-K group bought off other politicians - both in the ruling and opposition parties. /// END OPT ///

Mr. Choi denies any wrongdoing and there is, so far no, evidence that President Roh was involved.

But the arrest brings added pressure to the president - who has been criticized by the media, the opposition and members of his own party for corruption scandals and his handling of major policy issues and the economy.

Korea University professor, Lee Nae-young, says this arrest will inflict damage.

/// LEE ACT ///

All the political establishment of South Korea will be hurt by investigation. But President's Roh's government maybe will be hurt more than other party because his major political capital is morality.

/// END ACT ///

Mr. Roh is feeling the pressure. Just Monday, he called for an unprecedented referendum on his performance. He says he needs a public mandate in order to be able to lead South Korea. If he fails to get a vote of confidence in the proposed December vote, he says hewill resign after less than a year in office.

/// REST OPT ///

Since the stunning presidential announcement, three political parties - including the Millennium Democratic Party, which put Mr. Roh in office -- have vowed to oppose the referendum, calling it unconstitutional.

Some in the opposition want to oust the president, possibly by impeachment.

About 40 left-wing loyalists in the National Assembly on Thursday said they would fight to keep Mr. Roh in office, supporting the referendum plan. (Signed)

NEB/HK/SH/JO