Hyundai Asan
Encyclopedia
Hyundai Asan is an arm of the South Korea
n 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. It is also involved in the Kaesong Industrial Park project.
, which used to be South Korea's largest Chaebol
, was split into three sub-groups after the Asian financial crisis. Chung Mong-hun was involved in a power struggle with his elder brother, Chung Mong-koo, who heads another part of the Hyundai Group
, the automaker Hyundai Motor Company
.
from the government of former South Korea
n President Kim Dae-jung. The money was supposedly used to persuade North Korea
n leader Kim Jong-il
to attend the inter-Korean summit in 2000. Hyundai Asan is building an industrial park
, cross-border roads and railway lines in North Korea. The delay of the projects, due to political difficulties, put severe financial strains on the company. The head of Hyundai Asan, Chung Mong-hun
, faced corruption and embezzlement charges. Chung was tried on charges of manipulating company accounting records to hide the secret transfers and embezzling more than twelve million dollars of company funds to pay bribes.
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...
n conglomerate
Conglomerate (company)
A conglomerate is a combination of two or more corporations engaged in entirely different businesses that fall under one corporate structure , usually involving a parent company and several subsidiaries. Often, a conglomerate is a multi-industry company...
Hyundai Group
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...
and a major investor in 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...
. The company manages a number of projects, including the Kumgang-san tourist resort and road/rail building operations. It is also involved in the Kaesong Industrial Park project.
Hyundai split
The family-controlled Hyundai GroupHyundai 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...
, which used to be South Korea's largest 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"...
, was split into three sub-groups after the Asian financial crisis. Chung Mong-hun was involved in a power struggle with his elder brother, Chung Mong-koo, who heads another part of the Hyundai Group
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...
, the automaker Hyundai Motor Company
Hyundai Motor Company
Hyundai Motor Company is a Korean multinational automaker based in Seoul, South Korea which, along with Kia, comprises the Hyundai Kia Automotive Group, the world's fourth largest automaker as of 2009. As of 2011, it is the world's fastest growing automaker for two years running...
.
Accusations of corruption
Hyundai Asan has faced accusations of being a vehicle for illegally transferring US$ 100 million to North KoreaNorth 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...
from the government of former 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...
n President Kim Dae-jung. The money was supposedly used to persuade 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...
n 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...
to attend the inter-Korean summit in 2000. Hyundai Asan is building an industrial park
Industrial park
An industrial park is an area zoned and planned for the purpose of industrial development...
, cross-border roads and railway lines in North Korea. The delay of the projects, due to political difficulties, put severe financial strains on the company. The head of Hyundai Asan, 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...
, faced corruption and embezzlement charges. Chung was tried on charges of manipulating company accounting records to hide the secret transfers and embezzling more than twelve million dollars of company funds to pay bribes.
Recent developments
Kaesong Industrial Park is being developed in North Korea, with the planned participation of 250 South Korean companies, employing 100,000 North Koreans, by 2007. Three companies started operations in March 2005, in the park’s pilot phase.See also
- 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...
- Economy of North KoreaEconomy of North KoreaThe economy of North Korea is an industrialized and centrally planned economy.North Korea's economy remains one of the world's last centrally planned systems. The role of market allocation is sharply limited – mainly in the rural sector where some peasants sell produce from small private plots....
- Hyundai GroupHyundai GroupHyundai 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...
- 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"...
- North-South presidential summit corruption allegations
- Kumgang-san Tourist Region
- Chung Ju-yungChung Ju-yungChung Ju-yung was a South Korean businessman and the the founder of Hyundai Group.-Early life:Chung Ju-yung was born in Tongchon, Kangwŏn province , during a time when Korea was under Japanese rule. Born to a large impoverished family of peasants, he was the oldest out of six children...