Kwon, Received 20 billion Won in Cash

The Criminal Investigation Department of the Supreme Public Prosecutor`s Office, which is currently investigating whether the Hyundai Group has actually secretly siphoned over 15 billion won, requested an arrest warrant for former Millennium Democratic Party advisor Kwon Roh-kap on August 13, for allegedly receiving 20 billion won from Hyundai in support of the company`s North Korea project and for helping the group ease its financial difficulties.

Kwon requested the courts to verify whether the warrant is justified. The verdict on this is expected to be announced on the afternoon of August 14.

The prosecution is planning to summon additional politicians who received slush money from Hyundai in person early next week in relation to its bribery investigation.

According to the prosecution, Kwon allegedly met with Kim Young-wan, who lives abroad and laundered Hyundai`s slush money, and Chung Mong-hun, the late chairman of Hyundai Asan Group, in February 2002, at a hotel in Seoul, where he asked Chung to “support him with the presidential election funds,” and received 20 billion won through Kim, in cash, in return for comprehensive support for Hyundai Group and Hyundai`s North Korea business, including permitting Hyundai to operate a casino at Mt. Geumgang.

Prosecutors are currently conducting another investigation into whether Kwon solicited the Blue House and financial institutions to help the Hyundai affiliates in solving their financial difficulties in return for the 20 billion won.

The prosecution revealed that, “on receiving the money through Kim, Kwon called the late chairman and thanked him for the money.”

Chung and others testified at earlier investigations that Hyundai affiliates, including Hyundai Merchant Marine Co. and Hyundai Engineering & Construction Co., of which Chung was the owner, consulted Kim and raised 20 billion won in March.

The prosecution has discovered that the 200 billion won in cash was packed in over 60 boxes and then moved to a parking lot near Hyundai Apartment complex in Apgujongdong, Seoul, over four trips. It was Kim that designated the parking lot, with the money that was moved to the parking lot being delivered to Kwon.

Kwon claimed that he met Chung only once in 1998, but the prosecutors` investigation has revealed that they met 6 or 7 times from 1998 to 2000, and that Kim was always present at the meetings.

However, Kwon repeatedly insisted that he “immediately declined Hyundai`s offer to provide 10 billion won through Kim,” and that he “raised 11 billion won for the presidential election that was irrelevant to Hyundai`s offer, including the 1 billion won lent by Kim.”

The prosecution is pressing Kwon hard for the source and the whereabouts of the 11 billion won-election fund, but it is said that Kwon is refusing to answer.

A high-ranking official at the prosecutor`s office said, “because Kwon is not talking about the use of the fund and because an appeal on this case is no longer possible according to the political fund law, there is no further plan for investigations on the final use of Hyundai`s slush money and on the overall election fund.”

Wi-Yong Jung Jin-Young Hwang viyonz@donga.com buddy@donga.com