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...Northrop, the Los Angeles-based defense contractor, turned over $6.25 million to a company that was not a usual supplier. The money, which was ostensibly intended to finance the construction of a hotel in Seoul, went into the Hong Kong bank account of a firm controlled by Park Chong Kyu, a former South Korean general and owner of a Seoul night spot called the Safari Club...

Author: /time Magazine | Title: On A Wing And a Payoff | 6/20/1988 | See Source »

...hotel was never built, and Congress and the Korean government are investigating another possibility: that the funds amounted to a payoff to Park, who had important political connections in Seoul. Northrop allegedly paid Park, who died of liver cancer in 1985, to arrange for the Korean government to buy the company's proposed F-20 fighter plane. Had Park succeeded, the Wall Street Journal reported last week, he stood to receive $55 million from Northrop. Congress is looking into whether there was a violation of the U.S. Foreign Corrupt Practices Act, which bars payoffs to foreign officials...

Author: /time Magazine | Title: On A Wing And a Payoff | 6/20/1988 | See Source »

...sure. In most offset programs, the company making the investment does so in installments, as funds are needed, rather than in the kind of lump sum that Northrop sent. In addition, the committee wonders why Northrop sent the money to a Hong Kong account instead of directly to Seoul...

Author: /time Magazine | Title: On A Wing And a Payoff | 6/20/1988 | See Source »

Amid shouts of "Let's regain our national identity!" some 13,000 student protesters massed at Yonsei University in downtown Seoul last week. Their goal: to accompany an unofficial 13-member delegation to the "truce village" of Panmunjom, 30 miles away, in the Demilitarized Zone. There a matching delegation of 13 from Kim Il Sung University in Pyongyang, the Communist North Korean capital, waited to hold "reunification talks...

Author: /time Magazine | Title: South Korea: A Halt to Merger Mania | 6/20/1988 | See Source »

...Korean President has said that rejoining the two countries is a top priority. But relations between North and South are still hostile, and many South Koreans who cheered the students' successful push for democratic reforms last summer have reservations about the protesters' current cause. As the owner of a Seoul bakery summed it up: "I supported the students + when they fought for democracy. This time I don't understand them...

Author: /time Magazine | Title: South Korea: A Halt to Merger Mania | 6/20/1988 | See Source »

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