Cash-for-summit scandal
Encyclopedia
Cash-for-summit is the name of a political scandal
that broke in February 2003 in South Korea
and revolved around the secret payment by the Kim Dae-jung administration to North Korea
of millions of dollars to secure the landmark June 2000 North-South summit
between the two Koreas.
In 2000, South Korean President Kim Dae-jung participated in the first North-South presidential summit with North Korea's leader Kim Jong-il
, for which he won the Nobel Peace Prize
. The former president faces allegations of forming an organizational lobby to assist him winning the Nobel Peace Prize.
The alleged payment of hundreds of millions of dollars were sent using Hyundai Asan
as a conduit. Indicted in June 2003 for his role in the scandal, on charges of doctoring company books to hide the money transfers and facing up to three years in prison, Chung Mong-hun
, the Chairman of Hyundai Asan and the son of the Hyundai
chaebol
founder Chung Ju Yung, fell to his death from the 12th floor of Hyundai's Seoul
headquarters on August 4, 2003. Hyundai Asan is an unlisted company that spearheads South Korean business projects in North Korea.
Hyundai claimed the money was in payment for the company's monopoly rights to tourism and other projects in North Korea. But an independent investigation found the money included more than US$150 million in payments from the South Korean government that were linked to the landmark summit, although it stopped short of describing the payments as bribes.
Political scandal
A political scandal is a kind of political corruption that is exposed and becomes a scandal, in which politicians or government officials are accused of engaging in various illegal, corrupt, or unethical practices...
that broke in February 2003 in South Korea
South Korea
The Republic of Korea , , is a sovereign state in East Asia, located on the southern portion of the Korean Peninsula. It is neighbored by the People's Republic of China to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China to the south...
and revolved around the secret payment by the Kim Dae-jung administration to North Korea
North Korea
The Democratic People’s Republic of Korea , , is a country in East Asia, occupying the northern half of the Korean Peninsula. Its capital and largest city is Pyongyang. The Korean Demilitarized Zone serves as the buffer zone between North Korea and South Korea...
of millions of dollars to secure the landmark June 2000 North-South summit
Inter-Korean Summit
Inter-Korean Summits are meetings between the leaders of North Korea and South Korea. There have been two major meetings in the last decade, the first in 2000 and the second in 2007. The importance of these summits lies in the lack of formal communication between North and South Korea, which...
between the two Koreas.
In 2000, South Korean President Kim Dae-jung participated in the first North-South presidential summit with North Korea's leader Kim Jong-il
Kim Jong-il
Kim Jong-il, also written as Kim Jong Il, birth name Yuri Irsenovich Kim born 16 February 1941 or 16 February 1942 , is the Supreme Leader of the Democratic People's Republic of Korea...
, for which he won the Nobel Peace Prize
Nobel Peace Prize
The Nobel Peace Prize is one of the five Nobel Prizes bequeathed by the Swedish industrialist and inventor Alfred Nobel.-Background:According to Nobel's will, the Peace Prize shall be awarded to the person who...
. The former president faces allegations of forming an organizational lobby to assist him winning the Nobel Peace Prize.
The alleged payment of hundreds of millions of dollars were sent using Hyundai Asan
Hyundai Asan
Hyundai Asan is an arm of the South Korean conglomerate Hyundai Group and a major investor in North Korea. The company manages a number of projects, including the Kumgang-san tourist resort and road/rail building operations...
as a conduit. Indicted in June 2003 for his role in the scandal, on charges of doctoring company books to hide the money transfers and facing up to three years in prison, Chung Mong-hun
Chung Mong-hun
Chung Mong-hun was the 5th son of Chung Ju-yung, the founder of the South Korean Hyundai conglomerate. After the death of his father, he took over part of his father's role and became the chairman of Hyundai Asan, the company in charge of various business ventures between North and South Korea...
, the Chairman of Hyundai Asan and the son of the Hyundai
Hyundai Group
Hyundai Group is a South Korean conglomerate founded by Chung Ju-yung. The first company in the group was founded in 1947 as a construction company. With government assistance, Chung and his family members rapidly expanded into various industries, eventually becoming South Korea's second biggest...
chaebol
Chaebol
Chaebol refers to a South Korean form of business conglomerate. They are global multinationals owning numerous international enterprises. The term is often used in a context similar to that of the English word "conglomerate"...
founder Chung Ju Yung, fell to his death from the 12th floor of Hyundai's Seoul
Seoul
Seoul , officially the Seoul Special City, is the capital and largest metropolis of South Korea. A megacity with a population of over 10 million, it is the largest city proper in the OECD developed world...
headquarters on August 4, 2003. Hyundai Asan is an unlisted company that spearheads South Korean business projects in North Korea.
Hyundai claimed the money was in payment for the company's monopoly rights to tourism and other projects in North Korea. But an independent investigation found the money included more than US$150 million in payments from the South Korean government that were linked to the landmark summit, although it stopped short of describing the payments as bribes.
See also
- ChaebolChaebolChaebol refers to a South Korean form of business conglomerate. They are global multinationals owning numerous international enterprises. The term is often used in a context similar to that of the English word "conglomerate"...
- Division of KoreaDivision of KoreaThe division of Korea into North Korea and South Korea stems from the 1945 Allied victory in World War II, ending Japan's 35-year colonial rule of Korea. In a proposal opposed by nearly all Koreans, the United States and the Soviet Union agreed to temporarily occupy the country as a trusteeship...
- Hyundai AsanHyundai AsanHyundai Asan is an arm of the South Korean conglomerate Hyundai Group and a major investor in North Korea. The company manages a number of projects, including the Kumgang-san tourist resort and road/rail building operations...
- Korean Workers' Party
- Korean reunificationKorean reunificationKorean reunification refers to the hypothetical future reunification of North Korea and South Korea under a single government...
- List of Korea-related topics
- Political corruptionPolitical corruptionPolitical corruption is the use of legislated powers by government officials for illegitimate private gain. Misuse of government power for other purposes, such as repression of political opponents and general police brutality, is not considered political corruption. Neither are illegal acts by...
- Uri PartyUri PartyThe Yeollin Uri Party , generally abbreviated to Uri Party , was the briefly ruling political party in South Korea with a centrist political ideology...
External links
- "South Korean leader says move was meant to aid 'sunshine' policy", The International Herald Tribune, January 31, 2003.
- Claim Bolstered That N. Korea Took Summit Bribe
- South Korea convicts six over summit
- Roh rejects extension of probe on cash-for-summit scandal
- Key figures in cash-for-summit scandal receive suspended terms