10 Billion Won ($8.8 million) to Repair Gaesong Liaison Office? Suspicion of Cash Support to North Korea

– It costs 10 billion won to repair a four-story building?  The huge expense is not convincing by common sense.

2018-10-25

The Unification Ministry revealed that it spent 10 billion won ($8.8 million) for the repair and maintenance of the joint liaison office in Gaesong, North Korea

The Unification Ministry revealed that it has spent about 10 billion won ($8.8 million) for the repair and maintenance of the North-South joint liaison office in Gaeseong, and it is stirring up controversy.  

Cheong Yang-seog (정양석) (Korea Liberty Party), a member of the National Assembly’s Foreign Affairs and Unification Committee, received a report on the 298th Inter-Korean Exchange and Cooperation Promotion Council (남북교류협력추진협의회) on the 24th from the Ministry of Unification.  According to the report, the Council conducted the meeting in a written form from from 17th to 23rd, and the Ministry of Unification has deliberated and decided on the support plan of 9.8 billion won for the Inter-Korean Cooperation Fund for the repair and maintenance of inter-Korean joint liaison office.

The liaison office was not a new construction, but was for repair.  Therefore, the expense is allotted from the inter-Korean Cooperation Fund.  The Ministry of Unification did not disclose in advance the detailed plans and the estimated costs for the repair and maintenance work to the Inter-Korean Exchange and Cooperation Promotion Council, which has the authority to deliberate and decide the fund in advance.  Despite (the authority and the responsibility of the Council), the Council, which is filled with the current administration’s personnel and pro-ruling party civilians, did not take any actions to block it (the Unification Ministry’s action).

The construction began on July 2nd and was completed at the end of September.  It took 7.952 billion won ($7 million) to repair and maintain facilities for the operation of the liaison office, including offices and lodging, and another 1.66 billion won ($1.46 million) to quickly repair water purification plant, water treatment plant, wastewater and waste treatment plant.  Although the facility is used jointly by the North and South Koreans, the South was entirely responsible for the repair and maintenance costs.

Initially, the Inter-Korean Exchange and Cooperation Promotion Council deliberated and decided last July 16th that the expense to repair the South Korea-North Korea joint liaison office will be 86 million won ($75,680).  Less than 1/100 of the total project cost was handled initially, and the rest of the project costs were added and approved afterwards.

Of course there was a PR campaign publicizing to the citizens that the cost of the South-North joint liaison office repair was 86 million won ($75,680).

10 billion won ($8.8 million)  to renovate a 4-story building?

The repair project for the South-North joint liaison office in Kaesong started in July and was completed at the end of September.  The existing four-story inter-Korean exchange and cooperation consultation office building (total area 4,498.57㎡) was repaired.

According to the data released by the office of the National Assemblyman Cheong Yang-seog, 7.952 billion won ($7 million) was  to renovate and maintain the direct facilities for the operation of the office, such as government offices and lodging, and 1.66 billion won ($1.6 million) for supporting facilities such as water purification plants and water treatment plants.  It was confirmed that the construction supervision cost amounted to 168 million won ($147,840).

It does not make sense to the public that it would cost that much to renovate an existing building.  They feel that it would not cost that much even for a new building construction.

In addition, South Korea is paying 100% of the cost when the building is for joint use with North Korea.  It appears that (South Korea paying 100%) would be the procedure for future inter-Korea projects.

Initial expense was tiny, the actual expense increased more than 100 times

The Moon administration is aggressively pursuing ratification of the Panmunjom operations, but claims it cannot estimate the actual budget and refuses to announce even a  cost estimate.

In a word, it is deceiving the people.

The Moon Jae-in administration completely revealed how it intends to do business with North Korea in the future through the way it handled the joint liaison office repair process.

It would be saying that it will only require a tiny budget initially, and then wantonly spend more than 100 times the amount without deliberation by the National Assembly.

It is even more serious problem that this inter-Korean liaison office issue could have been hidden if the Liberty Korea Party did not conduct an inspection.  This year, the Ministry of Unification has repeatedly spent funds first, and then requested deliberation and approval of inter-korean cooperation funds afterwards.

“Spend first and request funds later” method was also used for the 2.86 billion won ($2.52 million) to support the North Korean teams/visitors attending the Pyeongchang Winter Olympics in February, 1.59 billion won ($1.4 million) for South Korean art/Taekwondo teams’ performance expenses in Pyongyang last April, and 3.22 billion won ($2.83 million) for facility repair (at Mount Geumgang) and event expenses for the family reunion last July.

Frequent inter-Korean events…there is a suspicion that they are to provide support to North Korea

This kind of North Korea expenses by the Moon Jae-in administration naturally will get on the cutting board.  It is suspicious whether it is actually giving cash to North Korea by conducting various sundry events not in Seoul, but in Pyongyang, and then (those entities and Unification Ministry) paying the expenses to North Korea and the Unification Ministry asking for funds later (from the South Korean government).

This is the background for the U.S. expressing concern that the “ROK-U.S. alliance may be cracking” when the (South Korean) executive branch is ratifying the Pyongyang Declaration by itself (without the National Assembly).

How can repairing a 4-story building cost 10 billion won ($8.8 million)? Even the repair cost of the facilities for the family reunion was 3.2 million won ($2.83 million).  Any project they (the Moon administration and supporters) mention costs multi million dollars.  If it were their own money, will they spend it like that?

It gets more and more suspicious as time passes.  The Liberty Korea Party and other opposition parties must conduct a thorough audit.

http://whytimes.kr/news/view.php?idx=2645