Court upholds arrest of cyber pundit

(ATTN: UPDATES with more details, comments throughout)
SEOUL, Jan. 15 (Yonhap) -- A Seoul court on Thursday upheld a decision to arrest
an influential cyber pundit who the government alleges spread false rumors that
caused havoc in the foreign exchange market.
Judges who reviewed circumstances surrounding the arrest and detention of the
pundit identified by his family name of Park, but better known by the Internet
alias "Minerva," said there is sufficient evidence to suggest possible unlawful
activities.
"Taking into consideration the seriousness of the case and the fact that Park has
denied many charges raised against him, there is reason to believe he may try to
destroy evidence if allowed to post bail," the Seoul Central District Court said.
It added that arguments by defense lawyers, who claimed that new "evidence"
supported Park's statement on Dec. 29 that the government interfered with the
foreign exchange rate, was either irrelevant or already known at the time the
court issued the arrest warrant permitting his detention before trial on
Saturday.
Earlier in the day, the Internet pundit told judges that he did not know he had
the level of influence to cause such an uproar. He had already admitted to being
the author of many on-line posts that predicted the collapse of Lehman Brothers
Holdings Inc. and the sharp depreciation of the Korean won against the U.S.
dollar.
Park was apprehended on Jan. 7 and charged with spreading false rumors that
alleged the Ministry of Strategy and Finance ordered seven large banks and
leading trading companies not to buy U.S. dollars.
Investigators said the unfounded claims by the 31-year-old, unemployed blogger
violated the country's communications law and cost the government US$2 billion as
it tried to stabilize the foreign exchange market.
Park's lawyers, however, argued that three days before the pundit made the Dec.
29 claim on the Internet, the finance ministry had actually summoned bankers
responsible for foreign exchange transactions and asked them to put off buying
the greenback.
The government said such discussions were commonplace and emphasized that no
formal emergency orders were issued.
The latest decision by the court means that Park, who wrote over 100 online
predictions mostly critical of the incumbent Lee Myung-bak administration's
economic policies, will have to stand trial while in jail.
Under South Korea's legal process, defense lawyers can challenge the legitimacy
of a court's decision to issue an arrest warrant.
State prosecutors, meanwhile, said they planned to wrap up their investigations
within the week at the earliest.
yonngong@yna.co.kr
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