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KVA Knowingly Supported Kim Sang-jin

Posted September. 14, 2007 03:08,   


It is confirmed that in June 2005, the Korea Veterans Association (KVA), despite its lawyers’ opposition, lent more money than Han Rim Civil Engineering (HRCE) President Kim Sang-jin asked for, and kept lending money to him even though he breached their contract.

Suspicions are rising that in the process of the KVA supporting HRCE, there were external influence or special favors granted.

This became clear when Grand National Party lawmaker Park Gye-dong obtained KVA documents needed for the lending recently.

According to the KVA documents, an advisory lawyer hired by KVA expressed his opinion before the contract was signed that if Kim did not make more than 50% progress in what was agreed in the provisional contract, the KVA should not support him. KVA, however, decided to lend 15 billion won without securing the fact that he purchased needed land.

Besides, the KVA lent Kim 15 billion won, an amount larger than what he initially asked for, for a land purchase in business plan he submitted to the KVA. He originally asked for 10 billion won. Three billion won for initial business costs that he had not asked for was also included.

In just 14 days after Kim’s application for the loans, the KVA signed a contract to lend him 15 billion won.

Despite breaches of contract by HRCE on 6 occasions, the KVA then pushed ahead with its plan to lend him 94 billion won.

In the first contract, the KVA and Kim agreed that within 6 months of the signing of the contract, Kim must complete his purchases of land for apartments. But he failed to do so.

A KVA official said, “We thought it would better for us to let Kim continue his business and to realize returns on our HRCE investment, rather than stop the project altogether and foreclose.”