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Huh Also Proposed Investment Project to KRC Last December

Huh Also Proposed Investment Project to KRC Last December

Posted April. 10, 2005 23:18,   


It was revealed yesterday that Huh Mun-suk, 71, the president of Korea Crude Oil (KCO) who played a critical role in getting Korea National Railroad (KNR), the predecessor of Korea Railroad, involved into a Russia oil development project, also proposed a Yeseong River sandpit project last December to the Korea Resources Corporation (KRC).

Suspicion is arising over the background of his proposal to KRC because he suggested it right after the Russia oil development project went awry—the contract was broken in November 15, 2004. His strong connection with political figures is also fueling suspicion further.

Last December, Huh visited Park Yang-soo, the president of KRC, who is located in Sindaebang-dong, Dongjak-gu, Seoul, saying, “We have signed a memorandum of understanding (MOU) with a local company which will be in charge of quarrying the sand in Yeseong River,” adding, “I would like KRC to deliver the sand, and the profit will be divided by half.”

President Park introduced a director of cooperation with North Korea in KRC to Huh, but his proposal was rejected at a meeting.

“We didn’t accept his proposal because he visited us with just a piece of a map, without a precise plan for the project, and asked us to be in charge of delivering sand,” said president Park in an interview with reporters of Dong-a Ilbo yesterday.

In regard to Huh’s meeting with Park, he said, “I heard that one lawmaker of the ruling party introduced KRC to Huh,” said Huh’s friend to reporters of Dong-a Ilbo.

However, Park said, “If I know him through a politician, how could I allow Huh to have a meeting with my subordinate?” adding, “It is absolutely wrong that I met Huh with the introduction of a politician.” The politician who is suspected of being involved in this meeting refused an interview with Dong-a Ilbo.

It has been reported that Huh also had a meeting with KNR for the Yeseong River project.

Meanwhile, the Board of Audit and Inspection (BAI) plans to end an investigation into the Russia oil development project after questioning Huh on reasons why he drew KNR to the project. Huh will be summoned today.

It has been reported that the BAI plans to announce the outcome of its investigation early this week, through which it is expected to call for harsh punishments on people who are related to this project because they have wasted the national treasury by kicking off an unprofitable project without consideration of its propriety.

Se-Jin Jung needjung@donga.com mint4a@donga.com