Hyundai`s Secret Fund, Partly Confiscated

The Central Investigation Department of the Supreme Public Prosecutor`s Office, which is investigating Hyundai Asan`s alleged secret money, reported on September 3 that they have found the 30 billion won fund from Kim Young-wan, who is currently in custody of the money Hyundai Asan gave to former Culture and Tourism Minister Park Ji-won and former Millennium Democratic Party advisor Kwon Roh-kap, and that they have confiscated the seizable amount of 20.3 billion won.

According to the prosecution, Kim was in hold of 17 billion won, which was left after returning part of the 35 billion won that was deposited to Kim by Park and Kwon, together with over 10 billion won, of which the source is unidentified.

In addition, prosecutors revealed that Park, who received 150 notes of 100 million won worth-Certificates of deposit from Hyundai, requested Kim to launder and store it, and used approximately 3 billion won of the fund until the beginning of March. The other 12 billion won was said to be still safe-kept by Kim.

After presenting the interim report of the investigation of above content, the prosecution indicted Park for the charge of bribery.

However, Lee Ik-chi, former Hyundai Securities Co. president, who delivered the money to Park, is not due for legal punishment.

According to the prosecution, at a 22nd floor- bar of a Hotel in Seoul, in April 2000, Park received 15 billion won worth Certificates of deposit from late Chairman of Hyundai Asan Chung Mong-hun, through Lee, asking for support for Mount Kumkang Business promotion.

A few days later, Park called Kim Young-wan to a hotel room, asking him to launder and manage the 15 billion won. Kim divided the money into four bundles of 5 billion, 5 billion, 4 billion and 1 billion won, laundered the money through a person named Lim, who lives abroad and who formerly worked in the financial sector, and has been safe-keeping the money in fraudulent and dummy accounts.

Kim wrote in his recently submitted written statement on this matter that he does “not know where the money had been used, and it seems that the remaining 12 billion won was left to be used as political fund in the future.”

Jin-Young Hwang buddy@donga.com