Libya wants huge compensation from South Korea: Reports

Libya has demanded economic benefits worth one billion dollars from South Korea in return for settling a diplomatic row sparked by spying accusations against Seoul, reports said on Thursday.

Seuol: Libya has demanded economic benefits
worth one billion dollars from South Korea in return for
settling a diplomatic row sparked by spying accusations
against Seoul, reports said on Thursday.

It has threatened to restrict South Korean businesses in
the North African state unless its demands are met, the
JoongAng Daily said.

Tripoli has demanded that Seoul carry out apparently
unpaid civil engineering work to the value of one billion
dollars, the paper said.

South Korean firms are currently working on civil
engineering contracts worth more than nine billion dollars in
Libya, according to the International Contractors Association
of Korea.

Today`s Seoul Sinmun newspaper reported that Libya wants
South Korea to build a 1,000 kilometre highway for free as a
"fine" - work that would normally cost one billion dollars.

The South`s Foreign Minister Yu Myung-Hwan has denied the
reports, and said that they would hinder diplomatic efforts to
end the rift.

No demand or request has been made," a ministry spokesman
said today.

The row became public after Libya expelled a South Korean
intelligence official in June for allegedly trying to collect
information on ruler Moamer Kadhafi, his family and leading
bureaucrats.

It also suspended operations at its de facto embassy in
Seoul, forcing South Korean businessmen to go overseas to seek
visas for Libya.

PTI