A relative of North Korean Workers Party secretary Choe Ryong-hae has been arrested in South Korea on charges of telephone fraud.

A source in China said Oh Ki-bom (45), the grandson of Choe's aunt, entered South Korea last month and was arrested trying to withdraw W37 million obtained through telephone fraud (US$1=W1,134).

Oh was born in China's Heilongjiang Province and ran a trading company in Yanbian. But he turned to telephone fraud when his business went sour due to strained diplomatic relations between China and North Korea.

Choe's father, former armed forces minister Choe Hyon, fought alongside North Korea founder Kim Il-sung against Japanese troops in China and is revered among the first generation of revolutionaries.

North Korean leader Kim Jong-un trusts the younger Choe due to his family's track record of loyalty to the regime.

There is talk that ethnic Koreans in Heilongjiang Province formed a support group loyal to Choe when he was appointed head of the military politburo three years ago.

Oh's grandmother Choe Jong-hae, Choe Hyon's sister, did not follow her brother to the North but settled in Heilongjiang Province. But Choe's family kept in touch with her until the 1960s.

The younger C hoe rose to power in North Korea under Kim Jong-un, but his position is wobbly and he was sacked from his politburo position in April last year and demoted from Workers Party standing committee member to secretary. There are rumors he barely escaped execution in Kim's efforts to bring the unruly military under control.

