Scandal of Korean 'Mata Hari'

Ms Kim checked herself into hospital, complaining of stress (pictures courtesy of JoongAng Ilbo)

By South Korea correspondent Caroline Gluck

These days it is hard to shock South Koreans with tales of political corruption, but a scandal involving an American-Korean female lobbyist and a former cabinet minister has gripped the country with its mixture of politics, money and sex.

Since the allegations first surfaced newspapers have given daily updates - including publication of love letters allegedly sent by the ex-defence minister to the female lobbyist.

Now I understand why Princess Diana died

Linda Kim

The woman at the centre of the scandal is 47-year-old Linda Kim - married, with two daughters, homes in Los Angeles and Seoul, and a taste for designer clothes.

Several newspapers have dubbed her South Korea's Mata Hari - the seductive German female spy who wove her charms during the First World War.

Favours

Ms Kim has complained of hounding from the press, who camped outside her house and chased her car.

Ministers were attracted to Ms Kim

"Now I understand why Princess Diana died", she told reporters, before checking herself into a hospital for stress-related problems.

She is now being investigated for her role four years ago in securing a multi-million dollar contract from the Korean defence ministry for a Texas-based company, E-Systems.

She has denied engaging in any illegal lobbying, including offering money in return for favours.

The scandal first surfaced when one South Korean newspaper - JoongAng Ilbo - published love letters that former defence minister, Lee Yang-Ho, had sent to her.

Inappropriate relations

Mr Lee admits that he had an inappropriate relationship with her, but denies that the $210m defence contract for radar and reconaissance equipment - which would allow the ministry to collect vital information about North Korea's armed forces - was awarded to E-Systems because of his contacts with Ms Kim.

Ms Kim: Taste for designer clothes

Further allegations then surfaced that at least four other senior government officials had been involved in Linda Kim's lobbying activities in connection with this deal - known as the Paektu project.

She has denied inapproriate relations with any of them.

The saga came on the heels of another scandal - also involving lobbyists - in the awarding of a contract for a high-speed TGV rail project linking the capital, Seoul and the port city of Pusan.

Lobbying debate

The authorities are trying to track down an American-based Korean lobbyist, Choe Man-Sok, alleged to have operated a huge lobbying fund and to have received an $11m commission from the French-based company, Alsthom, which won the contract.

The government has said it supports moves to re-open an investigation into the Paektu project.

Although the allegations are highly embarrassing, the events took place under a previous administration led by former President Kim Young-Sam.

The lobbying scandals have also prompted civic groups to call for lobbying to be legalised.

Lobbying is still regarded in South Korea as a questionable practice, but many lawmakers and groups are now saying that if lobbying is legalised, and clear guidelines drawn up, then maybe it can be made into a transparent and accountable business activity.