04/08/2003 15:36
Chung Mong-hun, the leading South Korean businessman accused of secretly funnelling illegal cash to communist North Korea, committed suicide early on Monday morning, according to police in Seoul.
The death of Mr Chung, chairman of Hyundai Group, is likely to throw the Hyundai business empire into turmoil and deepen the political controversy surrounding the so-called "cash-for-summit" allegations. Mr Chung was reported to have jumped to his death from the 12th floor of the conglomerate's headquarters in the South Korean capital.
He was awaiting trial on charges of having helped the South Korean government transfer $100m of secret funds to North Korea shortly before the historic inter-Korean summit in June 2000.
Prosecutors earlier this year accused the South Korean government of using secret funds to persuade the North to take part in the June 2000 summit, for which former president Kim Dae-jung won the Nobel Peace prize.
Mr Kim, who stood down as president in February, has avoided being drawn into the investigation but speculation has mounted that he could be questioned. Hyundai was used as a conduit for the payments because it is one of the few South Korean companies active in the North.
Mr Chung was accused of manipulating Hyundai's accounts to hide the payments. Hyundai was South Korea's biggest business group until it split up following the country's 1997 financial crisis. Mr Chung's brothers took control of the group's flagship car-making and shipbuilding businesses, while he was left with a rump of mostly debt-laden and loss-making companies, including Hyundai Asan, which operates businesses in North Korea.
The death of Mr Chung, chairman of Hyundai Group, is likely to throw the Hyundai business empire into turmoil and deepen the political controversy surrounding the so-called "cash-for-summit" allegations. Mr Chung was reported to have jumped to his death from the 12th floor of the conglomerate's headquarters in the South Korean capital.
He was awaiting trial on charges of having helped the South Korean government transfer $100m of secret funds to North Korea shortly before the historic inter-Korean summit in June 2000.
Prosecutors earlier this year accused the South Korean government of using secret funds to persuade the North to take part in the June 2000 summit, for which former president Kim Dae-jung won the Nobel Peace prize.
Mr Kim, who stood down as president in February, has avoided being drawn into the investigation but speculation has mounted that he could be questioned. Hyundai was used as a conduit for the payments because it is one of the few South Korean companies active in the North.
Mr Chung was accused of manipulating Hyundai's accounts to hide the payments. Hyundai was South Korea's biggest business group until it split up following the country's 1997 financial crisis. Mr Chung's brothers took control of the group's flagship car-making and shipbuilding businesses, while he was left with a rump of mostly debt-laden and loss-making companies, including Hyundai Asan, which operates businesses in North Korea.
Related Articles
