Money Sent to N. Korea as Part of "Checkbook Diplomacy" Amounts to $500 Million

Independent Counsel Song Doo-hwan, who has been investigating the checkbook diplomacy scandal of former President Kim Dae Jung, announced yesterday that the money wired to North Korea amounted to $500 million.

One source familiar with the case confirmed yesterday, "We have verified that Hyundai Group sent a total of $500 million to North. We have found out how the fund was raised and sent to the North Korean regime. As far as we know, however, there was no more money sent."

In February, former President Kim addressed the nation and told South Koreans, "I have just sent $500 million. There was no more money."

The independent counsel office, however, failed to explain how $200 million of the total was raised. It just elaborated on another two million dollars from Hyundai Merchant Marine and one hundred million from Hynix, leaving the two hundred million dollars unaccounted for.

In the meanwhile, Independent Counsel Song is likely to launch another probe to figure out whether Kim Dae Jung sent the money to North Korean dictator Kim Jung Il to buy the historic summit between the two Koreas.

The source also said, "We are also looking into the whereabouts of the 176.5 billion won out of the 400-billion loan Hyundai Merchant Marine took out from Industrial Bank," indicating that the rest of the loan, exclusive of the $200 million wired to North, might have been used for illegal purposes.

On the other hand, Song subpoenaed former National Intelligence Service high-ranking official Choi Gyu-back, who is suspected of having coordinated the wiring of Hyundai`s loan from Industrial Bank to the isolated regime.

The Counsel`s office questioned Choi about the connection and involvement of the "Kim Dae Jung Blue House" staff, conspiracy with former Foreign Exchange Bank head Kim Hyung-rim and the existence of the account through which Kim Jung Il received the money.

leon@donga.com jarrett@donga.com