HYUNDAI'S CHUNG COMMITS SUICIDE... CONSPIRACY IN THE MIDST

The fifth son of the Hyundai group's founder supposedly committed suicide yesterday in Seoul. I didn't think I would comment on Korean politics on my blog since it doesn't interest me much, but naturally various conspiracy theories shot into my head.

Why would a heir of a chaebol (Korean conglomerate) family commit suicide? Unless he was very emotionally unstable, the pending charges and investigation wouldn't be enough to send him over the top. Was his company in more financial difficulty than people knew? Did he not launder enough money for his personal accounts like other chaebol families did to sustain his lifestyle even after the worst outcome of his investigations? Very unlikely. What did he know about North Korea and the Kim Dae Jung summit deal? How would such information possibly effect DJ's legacy, Noh's current administration, or North Korea's positioning in the current crisis? Could such actions have been initiated by DJ and his operatives? Could such actions have been initiated by Noh, whose wife is the daughter of a famous North Korean spy? Could such actions have been initiated by the North Korean government?

My friends who are DJ or Noh supporters are raging now or very annoyed at my blog, but I find this situation interesting and really wonder about the truth of Chung Mong-hun's suicide. I'm also amused at myself for even going down this trail of thinking, but it's entertaining especially since I think Noh is an idiot and I have disagreed with DJ's "sunshine policy" from its beginnings.


Tragic demise of Hyundai heir
Monday, August 4, 2003
CNN

SEOUL, South Korea --Chung Mong-hun was once the "crown heir" of the vast Hyundai conglomerate his late father had built from scratch into South Korea's largest business empire.

Described as shy yet extremely ambitious by aides, Mong-hun stood on the verge of managing a company engaged in everything from cars and ships to department stores and computer chips.

The fifth of Chung Ju-yung's eight sons, Mong-hun rose to the conglomerate's chairmanship in a highly unusual move in South Korea's deeply Confucian corporate society where the eldest son takes over the family business.

In a family feud in 2000, however, his elder brother revolted and broke away from the group, taking Hyundai Motor, South Korea's No.1 carmaker, with him.

Hyundai Heavy Industries, the world's largest shipbuilder, also broke away in government-driven corporate reforms aimed at chopping up South Korea's sprawling family-controlled conglomerates into nimble, and more profitable units following the 1997-98 Asian financial crisis.

Mong-hun, left with heavily indebted or only marginally profitable subsidiaries, invested his hopes in North Korean projects his father had initiated before his death in 2001.

Born to a peasant family in North Korea, the senior Chung had a passion for investing in the North.

Chung Mong-hun frequently visited North Korea, meeting top North Korean leaders. He played a key role in arranging a historic summit between the two Koreas in 2000.

The meeting was a breakthrough in efforts to reconcile the North and South and helped former South Korean President Kim Dae-jung win the 2000 Nobel Peace Prize. But Chung's seemingly reckless deals in the North soon boomeranged after Kim stepped down in February after a five-year term.

Turning point
Chung's downward slide first became apparent when an independent counsel appointed by President Roh Moo-hyun to investigate the summit scandal announced in June that Hyundai-Asan sent $500 million to North Korea secretly and through improper channels shortly before the 2000 summit.

But only $400 million was said to be a company investment to secure business rights covering tourism, railways and an industrial park.

The rest -- $100 million -- was raised and sent by Hyundai on behalf of the government, the counsel said.

Chung was indicted on charges of doctoring company books to hide the money transfers.

Chung was also accused of embezzling $12.5 million in company funds to bribe government officials and politicians to win badly needed political and financial support for his companies and North Korean projects.

Chung Mong-hun's family has a history of involvement in Korean politics -- and controversy.

The patriarch Chung ran for president in the 1992 election and was later convicted of embezzlement and fraud in his campaign.

Another of his sons, Hyundai Heavy Industries chief Chung Mong-joon, was himself a candidate for president in last year's elections before bowing out of the race.

Media reports said 54-year-old Chung, a frequent visitor to North Korea, before leaping to his death had requested his ashes be scattered at Mount Kumgang, a scenic resort in the North where Hyundai operated ferry tours offering South Koreans a rare chance to visit the communist state.