On-line pundit's report cost gov't US$2 bln: prosecutors

(ATTN: UPDATES with justice minister's quotes in paras 7-8, singer at bottom)
SEOUL, Jan. 12 (Yonhap) -- Prosecutors said Monday that allegedly misleading
statements by an influential on-line pundit critical of the government cost the
nation some US$2 billion late last year.
Prosecutors apprehended an unemployed 30-year-old man last week whom they believe
authored over 100 on-line posts critical of the government's handling of the
economy. Identified by his surname Park, the suspect is more widely known by his
Internet alias "Minerva."
Investigators claim Minerva spread false information on December 29 through an
on-line posting claiming the government ordered financial institutions to stop
buying dollars in order to curb the local currency's depreciation.
"We believe that Park knowingly posted the writing expecting that his words would
affect the exchange market and that the government would use its foreign reserves
to stabilize it," an official at the Seoul Central District Court said.
Investigators say that the information, posted late in the day's trading session,
likely prompted a dollar-buying spree until the next day and ultimately forced
the government to inject $2 billion into the market to stabilize the volatile
currency.
Prosecutors said that they were consulting with the finance ministry to review
Park's work and its effects. Park claims to have authored the commentaries and
reports to help small businesses and other marginal market participants cope with
the financial crisis.
Speaking at the National Assembly, Justice Minister Kim Kyung-han said that he
"clearly" sees Park's work as a crime.
"Such false report undermines (the country's) economic credibility and distorts
the views of the economy," Kim said while explaining to lawmakers how prosecutors
began the investigation into the blogger.
Having been dubbed by supporters as an "on-line economic czar," Park gained a
substantial following after he predicted the fall of U.S. investment bank Lehman
Brothers Holdings Inc. in September. His sharp criticism of the government's
foreign exchange, real estate and other economic policies also garnered much
attention.
Park Chan-jong, the defense attorney, was expected to file a complaint with the
court seeking his client's release and questioning the legality of his physical
detention.
"We plan to discuss the matter with Park, which we believe he will approve," the
attorney said.
Minerva's supporters, including high-profile opposition lawmakers, claim the
nature of Park's information was not ultimately false, saying the Ministry of
Finance and Planning admitted to having requested financial institutions to
refrain from dollar-buying.
Meanwhile, renowned South Koreans singer Cho Young-nam offered a public apology
for "belittling" Park during his radio show last week when he described the
arrested blogger as an "oddball" with no financial expertise.
"I will watch what I say more carefully from now on," Cho said during his radio
show Monday, calling his remarks a "mistake."
After Cho made the scornful comment toward the blogger Saturday, hundreds of
listeners posted criticism on the MBC radio show's Web site, arguing Cho did not
have the authority to criticize Park.
odissy@yna.co.kr
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