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Sunday, May 5
The Indiana Daily Student

world

News executives indicted

SEOUL, South Korea -- Prosecutors indicted 12 newspaper owners and executives Tuesday on charges of evading millions of dollars in taxes and embezzling company funds. \nTax probes began in March against 23 leading newspaper and television organizations. The probes and a criminal investigation touched off debate over the motives of the government, which has lost popularity in recent months. \nCritics denounced the tax investigation as an attempt to muzzle a critical media. The government denied the charges, saying media organizations should be held accountable for financial wrongdoing like any other company. \nThe 23 media organizations were accused of evading taxes totaling $339 million between 1995 and 2000. In June, prosecutors opened a criminal investigation against six newspapers, including the nation's three largest dailies, Chosun Ilbo, Joong Ang Ilbo and Dong-A Ilbo. \nLast month, prosecutors arrested three newspaper owners, including Bang Sang-hoon, president-publisher of Chosun Ilbo; Kim Byung-kwan of Dong-A Ilbo; and Cho Hee-joon, the controlling shareholder of a church-affiliated daily, Kookmin Ilbo. \nThe three were charged with evading up to $4.9 million in corporate and private taxes and embezzling up to $3.5 million in company funds. \nIf found guilty of evading taxes of more than $390,000, they could face prison terms ranging from five years to life. \nPresident Kim Dae-jung, winner of the Nobel Peace Prize last year, has been in conflict with the nation's mainstream newspapers over the government's engagement policy toward North Korea. Critics charge that the government has been too soft on the North's communist government. \nSouth Korea's Cabinet submitted resignations Tuesday in the wake of a parliamentary vote to dismiss the minister in charge of North Korea policy.

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