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Unification Minister Wants Legal Action Taken in Hyundai Asan Slush Fund Case

Unification Minister Wants Legal Action Taken in Hyundai Asan Slush Fund Case

Posted October. 11, 2005 03:02,   


Minister of Unification Chung Dong-young said Monday that those involved in former Hyundai Asan vice chairman Kim Yoon-kyu’s slush fund scandal would “be dealt with in accordance with the related law.”

This is the first time a government official has hinted at the possible legal action that could be taken in the case.

Chung said during a National Assembly Unification, Diplomacy, and Trade Committee audit of the Unification Ministry that “I do not intend to support Mr. Kim, nor pressure or patronize Hyundai Asan.”

Chung added, “The prosecutors’ office (PO) could conduct a cognitive investigation. This is an internal accounting fraud case. If Hyundai Asan files a lawsuit, the PO will investigate the case.”

Chung went on to say, “This is a case of an accounting fraud which occurred in a private company during the process of executing the South-North cooperation fund. If a user of the fund diverted the money from its original purpose, the government will confiscate the entire fund by law.”

When Grand National Party’s Hong Joon-pyo urged the Board of Audit (BOA) to launch a special audit of the Kim slush fund case, Chung answered, “We will focus the October BOA regular audit on this case and execute an intensive audit on the South-North cooperation fund execution and post-execution management.”

As for North Korea’s offering of the Gaesung tourism project to Lotte Tours, Chung said, “The exclusive contract signed between Hyundai Asan and North Korea will remain valid.” However, the Unification Minister also added, “In principle, government policy does not need to be automatically bound by an exclusive contract.”