GNP alleges use of slush fund

The main opposition Grand National Party yesterday charged that Hyundai Merchant Marine Co. created a slush fund of 20 billion won ($17 million) that was used to pay off politicians during the April 2000 general election. Most of the money, the party said, found its way into the hands of Millennium Democratic Party politicians.

The Hyundai affiliate is also at the center of allegations that the government bribed the North to secure the historic inter-Korean summit in June 2000. It recently admitted sending $200 million to the North in 2000, which the opposition party charges was a bribe to the North's government.

Kim Young-iel, the GNP secretary-general, alleged that the Hyundai affiliate gave money not only to influential figures of the outgoing Kim Dae-jung administration but also to close aides of President-elect Roh Moo-hyun. Mr. Kim, the GNP official, questioned why Mr. Roh recently overturned his previous stance of calling for a thorough investigation into the charges, and instead called for a political settlement.

Rhee Q-taek, the GNP floor leader, said he had been informed by a "reliable source," that Hyundai's slush funds enabled all MDP candidates to spend big on their campaigns.

Another senior GNP member charged that Hyundai Merchant Marine faked accounting records of overseas remittances amounting to 20 billion won in March 2000.

The GNP said it has known about Hyundai Merchant Marine's accounting records related to the creation of the slush fund for some time, but did not reveal it during the Dec. 19 presidential election. A senior GNP official said that the party intended to make it public if Chung Mong-joon, former presidential candidate of the National Alliance 21 and an heir to the Hyundai business empire, had run in the election. The GNP dropped the plan when Mr. Chung bowed out of the race to endorse Mr. Roh.

The shipping company denied the charges, saying the accounting records presented by the GNP are not those of the company.

by Nam Jeong-ho