100M Peace Center Donation Questioned

The Kim Dae-jung Peace Center was revealed to have recently received 100 million won from economic organizations for the sixth anniversary of the June 15 Joint Declaration.

It is unprecedented that business associations gave away backroom money with no regard to their business. Some say that it was because the organizations were well aware that former or current high-ranking officials would attend the ceremony.

The Korea Chamber of Commerce and Industry and Korea international Trade Association (KITA) were confirmed to have paid 50 million won respectively for the dinner event organized by the Peace Center at the Grand Ballroom of the Plaza Hotel located in Taepyeongno, Jung-gu, Seoul on June 8.

This paper has found that on June 5 in an official letter the center asked the two associations to be in tight cooperation with it in hosting the ceremony.

In addition to the letter, the center allegedly made phone calls to the two organizations in order to ask for financial support worth 100 million won for the hosting cost.

The two representative business groups in South Korea reached an agreement to share 50 million won in costs, respectively, then sent money to the Kim Dae-jung Peace Center.

“We made the move to boost economic cooperation between Seoul and Pyongyang,” the two said.

The center reportedly demanded the Federation of Korean Industries give similar financial support as well, but was refused.

In an interview with this paper, the Federation of Korean Industries originally said, “ We refused the call due to the shortage of outside cooperation funds and a possible political scandal,” but recently reversed its position, saying, “We have never been asked to give any money.”

Remaining anonymous, an official of a business group confessed, “Usually we are often asked to give financial support but refuse it most of the time. Although our member companies are unlikely to agree with the cost support for the event, we were unable to say no this time.”

Business circles presume that the two groups took into consideration the fact that a handful of the attendees of the event were incumbent high officials in government when deciding to say yes.

In the ceremony, more than 300 celebrities and government officials attended including Goh Kun (former P.M.), Lee Hae-chan (former P.M.), Lim Dong-won (former minister of unification), Chung Se-hyun (ex-minister of unification), Lee Jong-chan (ex-chairman of National Intelligence Service), Lee Sang-ju (ex-minister of education), Jeon Yoon-cheol (chairman of the Board of Audit and Inspection), Kim Jin-Pyo (minister of education), Chung Se-gyun (minister Commerce, Industry and Energy), Kim Geun-tae (chairman of Uri party), Kim Han-gil (floor leader of Uri party) and Han Hwa-kap (chairman of Democratic party).

Choi Gyeong-hwan, secretary of public relations for the Kim Dae-jung Peace Center, explained, “We required all the attendants at the event for sharing the cost and asked the concerned economy associations some financial support in an effort to only make up the rest of the cost.”

“Financial support from business circles is an old practice and in this case, the money was not even that much,” he insisted.

Na Seong-lin, Professor of Finance at Hanyang University, said, “Donations for political purposes are not a desirable practice. And the bad habit needs to be eradicated.”

Jeong-Hun Park sunshade@donga.com