Kim Dae-jung Approved of Money Transfer to North Korea

Special prosecutors investigating the "cash-for summit" scandal discovered that former president Kim Dae-jung was reported to have violated laws on inter-Korean exchange and cooperation in relation to cash remittance to North Korea. The former president approved of the violation of the law, according to the investigation.

In a document obtained by this paper on Friday from the special prosecutor`s office, Im Dong-won, former head of the National Intelligence Service said during the investigation in May and June that he, together with former Tourism and Culture Minister Park Ji-won and former economic advisor to the president Lee Ki-ho, told the former president about the possible ramifications of the law. The former president, however, approved of wire transfer nonetheless, saying that the cash remittance through Hyundai had to be done even though it was against the law.

Im also said in the document that it was illegal for Hyundai to send $500 million to the North in return for obtaining licenses to do business in North Korea. This made it difficult to get approval for the cash remittance from the Minister for Reunification. He said this problem was also reported to the former president.

This is expected to bring about controversies surrounding the issue. Im`s statement is different from the special prosecutors` announcement on June 25 last month that they did not find any evidence concerning the former president`s involvement in the illegal transfer of the money.

This paper obtained on the same day documents about the special prosecutors` investigation record. The document included statements from the chairman of the board of directors at Hyundai Asan, Jeong Mong-hyeon, former economy advisor to the president Lee Ki-ho, former governor of the Korea Development Bank Lee Keun-yeong, former president of Hyundai Merchant Marine Kim Chung-sik, former official of the Korea Development Bank, Park Sang-bae.

According to the document, officials at Korea Development Bank showed opposition to the loans to Hyundai, saying that the amount exceeded the maximum loan permitted for one person. Despite opposition however, Park Sang-bae approved of loans to Hyundai at the request of former governor Lee and former presidential advisor Lee.

The document also revealed that North Korea`s request was also a reason for the cash remittance, which was a violation of the law at that time. The president of Hyundai Asan, Kim Yun-kyun stated in the document that chairman Jeong told North Korean officials that they could send money after the summit due to difficulties in raising the funds. North Korea however insisted that the summit would be held successfully if the money were sent before.

North Korea indeed handed a document about 10 secret bank accounts to then chairman of Hyundai Group Jeong Mong-heon at the groundbreaking ceremony on the pier at Mt. Keumkang. The North directed that they send money to those accounts.

Jong-Dae Ha Jin-Kyun Kil orionha@donga.com leon@donga.com