Bank officials summoned to explain loan to Hyundai

The independent counsel’s investigation into the cash-for-summit scandal is picking up speed. Yesterday the counsel summoned former officials of the Korea Development Bank, which made irregular loans to Hyundai Merchant Marine, the shipping company that sent a large sum of money to North Korea, allegedly linked to that country’s participation in the Korean summit in June 2000.
Saturday’s report by the Joong-Ang Daily that the company had sent more money to the North than had been previously disclosed heated up debate between the main political parties.
The counsel’s office yesterday summoned Chung Chull-joe, a former vice president of the bank. It plans to call Uhm Rak-yong, a former president of the bank, and Park Sang-bae, another former vice president. It may summon Lee Keun-young, another former president of the bank, who has said he was under political pressure to make loans to the shipping company.
“We will finish investigating the bank this week,” said a prosecutor. The counsel’s office said it has an analysis of the bank’s accounting from the Board of Audit and Inspection.
How much money found its way to the North has become a hot issue since Saturday’s report that the shipping company delivered an additional $300 million to North Korea shortly before the summit. That would be on top of $500 million previously acknowledged by government officials.
The opposition Grand National Party denounced the Millennium Democratic Party and the government. “At the center of the cash-for-summit scandal, the former president Kim Dae-jung stands,” a party official said. “In February he said the money was $500 million. We can no longer believe him.”
The MDP lawmaker Chung Kyun-hwan retorted that the GNP was using a Hyundai official’s statement as a pretext for making political attacks. But another MDP official said, “We are perplexed to hear this news as the independent counsel starts work. Our position is that the bare truth must be revealed.”

by Nam Jeong-ho, Park Shin-hong