Money enticed North Korea to summit: Hyundai
Money enticed North Korea to summit: Hyundai
Agence France-Presse, Seoul
South Korea's Hyundai business group admitted Sunday that its
secret money transfer to North Korea served as a sweetener for
bringing the Stalinist country to an inter-Korean summit three
years ago.
"Our remittances contributed partly to bringing North Korea to
the summit," Chung Mong-Hun, who heads Hyundai's business deal
with North Korea, told reporters.
He said Hyundai had agreed to send US$500 million in secret
payments to Pyongyang for securing exclusive business rights in
the Stalinist country.
Chung's revelations followed an apology Friday by South Korean
President Kim Dae-Jung for the transfer of $200 million by
Hyundai just before the summit in June 2000.
The $200 million was part of $500 million that Hyundai had
agreed to pay to the North in return for rights to a wide range
of projects.
The president said his government enlisted Hyundai's
assistance in arranging the summit, which helped him receive a
Nobel Peace Prize.
But he denied allegations that the cash transfer was used to
entice North Korean leader Kim Jong-Il to hold the summit.
Chung said Hyundai obtained 30-year rights to engage in a wide
range of projects including railways, electricity, communication,
tourism and the construction of an industrial zones.
"Because of the unique relationship between South and North
Korea, cooperation and understanding from our government were
inevitable," Chung said.
His remarks followed a landmark tour to the North's Kumgang
resort for the first time through the demilitarized zone which
has divided the Korean peninsula since the 1950-1953 Korean War.
Chung apologized for the payoff scandal but said it should not
hamper Hyundai's projects in North Korea.
North Korea has threatened to scrap inter-Korean
reconciliation projects if South Korea delves into the deal with
Hyundai.
The opposition Grand National Party (GNP), which claims
Hyundai acted as a conduit for the bribe, has called for a
special prosecutor's independent investigation.
Kim Dae-Jung will be succeeded on Feb. 25 by president-elect
Roh Moo-Hyun, who has vowed to continue with his predecessor's
North Korean policy.