(LEAD) Independence fighters' association chief to quit amid embezzlement allegations

(ATTN: UPDATES with background info in paras 2-4, patriots ministry's statement in last paras)

SEOUL, Feb. 16 (Yonhap) -- The head of a state-funded association of national independence fighters and their descendants offered to step down Wednesday amid growing calls for his resignation over embezzlement allegations.

The announcement by Kim Won-wung, chief of the Heritage of Korean Independence (HKI), followed an audit outcome released by the Ministry of Patriots and Veterans Affairs accusing him of misappropriating part of profits from a HKI cafe run at the National Assembly.

It came as senior members of the HKI had planned to vote whether to impeach Kim on Friday.

The former third-term lawmaker has led the association with networks nationwide for two years and eight months -- a period dotted by political and ideological controversies over his feisty remarks against Japan and in connection with some other sensitive issues related to Korea's modern history.

"I bow my head and apologize for having hurt the pride of the (HKI) members and done the HKI a disservice," Kim said in a statement sent to Yonhap News Agency. "Such a mishap has occurred as I was not capable of managing personnel and failed to properly supervise (the cafe)."

His remarks appear to be a repeat of his earlier claims that embezzlement allegations were trumped up by a former HKI employee who himself had faced corruption suspicion within the association.

In its audit findings disclosed last Thursday, the patriots ministry said a slush fund valued at 61 million won (US$50,960) has been created from the cafe's proceeds, and about 10 million won of the fund has been wired to Kim's personal account. The cafe was set up in 2020 to fund scholarships for descendants of national independence fighters.

Kim has called the findings a "unilateral claim" and "defamation."

Soon after Kim's offer to resign, the patriots ministry expressed regrets in its capacity as an "entity in charge of guiding and supervising" the association.

"We will oversee the HKI to ensure an early normalization of its operation," the ministry said in a statement sent to reporters.

It marks the first voluntary resignation by a HKI chief since its establishment in 1965. On Friday, the association plans to convene an extraordinary plenary session on Kim's resignation, according to the ministry. It is scheduled to pick a new chief during a regular plenary session slated for May.

Kim assumed the top position in June 2019.
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