The employer of slain South Korean hostage Kim Sun-il says the 15,000 dollars he lent to the South Korean Ambassador to Iraq was not for personal use but for the embassy's operational fees.

Kim Chun-ho made the remarks to reporters Thursday after he was questioned for the second time by inspectors from the Board of Audit and Inspection (BAI) on his employee's abduction and subsequent murder by Islamic militants in Iraq last month.

The BAI confirmed at a parliamentary committee meeting Thursday that Seoul's Ambassador to Iraq, Lim Hong-jae, had borrowed and repaid 15,000 dollars from Kim, president of Jordan-based Gana General Trading Company.

During eight hours of questioning, Kim also reportedly gave detailed testimony on the ultimately unsuccessful negotiations he held with his employee's abductors.

The BAI plans to re-summon the Gana president shortly after it reviews the results of an investigation by a team of state auditors due to return home Saturday after wrapping up an on-site inspection in Jordan and Baghdad.