[Editorial] Hyundai Electronics should Reveal Whereabouts of 100 Million Dollars

The allegation of secret fund to North Korea has been inflating. As the allegation that Hyundai Merchant Marine sent 400 million dollars to North Korea is still mired in mystery, another allegation has been raised, sending a shock wave all across the nation.

A lawmaker of the opposition party said that 100 million dollars from Hyundai Electronics might be sent to North Korea.

According to Rep. Lee Ju-yeong of the Grand National Party(GNP), Hyundai Electronics remitted 100 million dollars out of 162 million dollars in proceeds from sale of its UK plant to a paper company established by Hyundai Construction. The paper company was liquidated right after the remittance.

Considering that former official at Hyundai Electronics told almost the same story, his revelation does not seem groundless. The problem is where the money went.

Rep. Lee argues that the money might be secretly sent to North Korea or used for illegal purposes. His remarks seem grounded. Most of all, Hyundai Electronics remitted the money to the paper company just before the summit between presidents of South and North Korea and the money was sent under pressure without any formal direction from the company. Moreover, the company amortized the entire sum in just seven months after the remittance, which is not understandable according to accounting practices.

Also suspicious is that Hyundai Electronics and Hyundai Construction tried to hide the remittance of such a huge amount of money. Hyundai Electronics did not even report the fact to its main creditor bank. Hyundai Construction did not mention the establishment of the paper company in its audit report. It is an abnormal case that the establishment of the paper company was not disclosed in Hyundai Construction`s financial statement and noticed during the examination by the Financial Supervisory Service.

But as the secret remittance of 100 million dollars has been come to light, the government should figure out where the money was sent by whom for what purposes. Management of Hyundai Group including its chairman Chung Mong-hun must know the details. The government should be actively engaged in digging up the truth behind the secret remittance. It should no longer try to protect the Hyundai Group or skate over the suspicions of secret aid to the North.