Doubt on the Trace of 300 Billion Won of Hyundai Merchant Marine

300 billion won out of 490 billion won Industry Bank lent to Hyundai Merchant Marine in June 2000 had disappeared for 6 months from bookkeeping and reappeared. So it amplified doubt on where the money was spent.

The period for obscure purpose from June to December of 2000 coincided with the period when, the Grand National Party argued, Hyundai Merchant Marine sent 490 billion won to North Korea. Additionally, Some evidences appear that Hyundai Merchant Marine didn’t have financial difficulties until May, but suddenly, it began to suffer from the difficulties from June.

On the report on first half of 2000 submitted to Financial Supervisory Service by Hyundai Merchant Marine, only 100 billion for overdraft and 90 for general draft were recorded and there was no record on 300 billion won.

However, in the report for 2000 financial year, 130 billion won for overdraft, 90 billion won for general draft, 100 billion for the operation of foreign currency and 170 billion won for repayment were recorded.

For the doubt, Hyundai Merchant Marine said, “we will not respond to the raise of doubts one by one”

One the other side, Lee Yun-soo, ex-vice president of Foreign Currency Bank that was main transaction bank of Hyundai Merchant Marine commented “at 17th of May immediately before Industry Bank lent fund, Hyundai Merchant Marine asked loan for 50 billion loan foe short term purpose, so I extended its overdraft” and added “until then, as far as I remember, Hyundai Merchant Marine didn’t have any financial difficulties”

A person concerned for subsidies of Hyundai Group in Foreign Currency Bank commented “It is not true that Industry bank discussed with main transaction bank to lend fund to Hyundai Merchant Marine” and added “Hyundai Merchant Marine didn’t ask additional 400 billion won loan except 50 billion won for overdraft”

Hyundai Merchant Marine had to repay 475 billion won began mature from June of 2000. However it established budget for it with 400 billion won of transport revenue monthly, 200 billion won of disposable reserve and 440 billion overdraft.

According to National Information & Credit Evaluation Inc. and Korea Investors Service, Hyundai Merchant Marine maintained healthy financial condition and marked with A grade.

Sang-Chul Kim Do-Young Kim sckim007@donga.com nirvana1@donga.com