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.