[Editorial] Turning the ‘Kim Yoon-kyu Incident’ into a Blessing

Drawing attention is the release of an audit report by Hyundai, which uncovered acts of personal corruption committed by former Hyundai Asan CEO Kim Yoon-kyu while he was pushing the Mt. Kumgang tourism project. In particular, a stir is in the making as claims have been raised that some of the funds he diverted included money provided by the government from its fund set aside to support inter-Korean cooperation projects.

If Kim’s diversion of funds proves true, the “Kim Yoon-kyu incident,” in which the former Hyundai Asan chief was deprived of his position in August, leading to conflict between North Korea and Hyundai, will take on a new aspect. This is because it will be difficult for the government, which operates funds with taxpayer money, to avoid taking some responsibility. The government says that it has never given money directly to Hyundai Asan, so claims are not materializing that it diverted funds, but it must ensure that not one speck of suspicion remains through a Board of Audit and Inspection audit.

With this incident, there is a need to examine the diverse North Korea projects currently underway, including the Mt. Kumgang project. The North Korean system and practices are different from ours, and what’s more, there have been arguments that we need to support development of the inter-Korean relationship, so it’s true that there have been some things that have not been transparent. One method is to abandon the system so far in which the roles of government and private companies have not been clear, with the government securely handling what it must do and boosting the autonomy of private corporations. Of course, corporations must improve their responsibility. In this case, Hyundai cannot avoid criticism that is brought this situation by failing to properly deal with internal conflicts and its relationship with the North.

This incident mustn’t have a negative influence on North Korean projects in their entirety. We must accept those North Korean demands that we must accept, and actively try to get them to understand what we must make them understand. Joint efforts from the North and South are required to develop economic cooperation smoothly.

The Hankyoreh, 1 October 2005.

[Translations by Seoul Selection (MH)]