SEOUL - In a gesture of contrition to try to salvage his presidency, South Korea's President Kim Young-sam apologised yesterday for a loans scandal and banished one of his sons from public life. Inca televised address on the fourth anniversary of his inauguration, Mr Kim said he was in "agony and sorrow" over the scandal involving dubious loans to the failed Hanbo Steel Co. He said he was ashamed that his own son had become embroiled in the affair.
Three of Mr Kim's closest aides have been arrested in the scandal, which has rocked the nation. Hanbo collapsed on January 23rd with debts estimated at $5.8 billion. The chairman of the ruling New Korea Party, Mr Lee Hong-koo, and other party elders tendered their resignations, and cabinet ministers are expected to offer to resign shortly en masse to give Mr Kim free rein to shuffle his cabinet.