“Pro-North Federation of Korean Resident in Japan Sent a Portion of Embezzled Money to North“

Tokyo newspaper reported yesterday that the Tokyo Police Agency, which has been investigating the embezzlement case of the Chogin Tokyo Trust Union, an affiliate of the Pro-North Federation of Korean Resident in Japan (hereafter pro-North Federation), is investigating a suspicious case over the use of a portion of the embezzled money for the `Pyongyang International Physical Culture Festival` held in 1995 in Pyongyang.

Tokyo newspaper reported that according to the Japanese police, one of the reasons the former financial director Kang Young-Kwan (66, currently in custody) directed the Chogin Tokyo Trust Union to embezzle was to prepare for the funds for the Pyongyang festival.

Based on the testimonies of the former chairperson of the board Chung Kyung-Saeng (64, currently in custody), the Tokyo police suspects that the North instructed the pro-North Federation to prepare for the funds for the Pyongyang festival, and the former director Kang instructed the Chogin Tokyo Trust Union to embezzle for the funds.

`Pyongyang International Physical Culture Festival` was an international event, co-hosted by the Asia Pacific Peace Committee and the New Japan Professional Wrestling Association on April 28th and 29th in 1995 at the Pyongyang 5.1 sports stadium, to advertise the North`s open economic policy both to the nation and to the abroad. The festival was known to have been planned stimulated by the Seoul Olympic Games in 1988, and the professional wrestling matches, the national dance circus, and the mass games were performed.

The foreign press estimated 10,000 to 15,000 foreign tourists at that time, while the South Korea estimated 7,000 to 8,000, much less than the North`s anticipation of 30,000 tourists. A high ranking South Korean government official said, "A total of two billion yen was invested for the festival. One billion was funded by the 48 local headquarters of the pro-North Federation and by the 18 organizations` donation. It seemed that the North had a hard time to directly raise the rest of the money."

If some of the embezzled money by the Chogin Trust Union was used for the Pyongyang festival, it is possible that the money might have been sent to the North mixed with the donation made by the local headquarters.

Shim Kyu-Sun ksshim@donga.com