Document Agreeing to Transfer $3 Billion to North Korea Emerged at South Korea’s Spy Agency Head Nominee Park Jie-won’s Hearing

2020-8-4, Tara O

Park Jie-won (박지원) was appointed as the Director of the National Intelligence Service on July 28, 2020 by Moon Jae-in, the day after his hearing on July 27, 2020 at the National Assembly. As with the case with Lee In-yong, who was appointed as the new Minister of Unification, the ruling Democratic Party of Korea (Deobureo Minjoo Party) excluded other parties in submitting the hearing report and recommendation to President Moon for his approval, essentially behaving as a one-party legislature, and President Moon quickly approved it.

Among various questions, the most controversial topic was the issue of agreeing to transfer $3 billion ($2.5 billion in investment and economic assistance and $500 million for the 2000 summit) to North Korea during the Kim Dae-jung administration. The agreement document produced at the hearing showed Park Jie-won’s signature.

The video of National Assemblyman Joo Ho-young (주호영), United Future Party, asking Park Ji-won questions during his nomination hearing regarding the transfer is below.

(6:21) Joo Ho-young: You said you only acted as a special envoy for the June 15, 2000 summit, and don’t know anything about the $500,000,000 (transferred from South Korea to North Korea), right?

(6:33) Park Jie-won: That’s right.

(6:34) Joo: Were you involved with sending the $500,000,000 or not?

(6:38) Park: Not me. I didn’t do it.

(6:40): Joo: You didn’t?

North Korea’s Song Ho-kyung and South Korea’s Park Jie-won met in Shanghai World China Hotel in China on April 8, 2000 and agreed to hold the June 2000 summit between Kim Dae-jung and Kim Jong-il.

(6:48) Joo: (holds up a document) There is a document called S-N Agreement. “The south and north in a historical…” and going to the bottom, “Upholding the superior authority’s will” “south side Culture and Tourism Minister Park Jie-won” “Upholding the superior authority’s will” “north side Joseon (North Korea) Asia Pacific Peace Committee Deputy Chairman Song Ho-kyung” “ April 4, 2000.” Have you seen this document?

(7:08) Park: It was I who signed it.

(7:09) Joo: Are you sure?

(7:09) Park: That is the famous 4.8 Agreement.

(7:11) Joo: Are you sure?

(7:11) Park: Where in the document does it show $500,000,000?

(7:15) Joo: (asks an assistant to show slides about economic cooperation document)

(7:16) Park: Mr. Assemblyman. If you’re going to make that public, then do it right.

(7:18) Joo: Hang on, just watch.

(7:18) Park: You can’t bring up the issue and deceive the public.

(7:22) Joo: Please take a look at the document about economic cooperation. (holding up another document), have you seen this document before?

(7:27) Park: (pause)

(7:28) Joo: A document on Agreement on Economic Cooperation.

(7:29) Park: Did I sign that?

(7:33) Joo: (starts to read the document titled Agreement on Economic Cooperation) “The South and the North agreed as follows to show their willingness to contribute to the reconciliation and cooperation of the minjok (ethnic Koreans), the prosperity of the minjok, and the resolution of humanitarian issues.”

“First, on the basis of the spirit of minjok cooperation and mutual support, the south side provides the north side with $2.5 billion investment and economic cooperation cash loan to the social indirect sector for three years from June 2000.”

“Second, the south side provides an amount of $500 million based on the humanitarian spirit of the inter-Korean summit.”

“Third, working-level matters related to this will be discussed later.”

“Upholding the superior authority’s will”

[Note: He didn’t read the rest, but the rest shows:

“south side Culture and Tourism Minister Park Jie-won”

“Upholding the superior authority’s will”

“north side Joseon (North Korea) Asia Pacific Peace Committee Deputy Chairman Song Ho-kyung”]

Joo Ho-young holds up the 2 documents (S-N Agreement and Economic Cooperation Agreement) with the same signature blocks and signatures, as well as the same North Korean font. Park Jie-won looks on. National Assembly Hearing, July 27, 2020.

(8:08) Joo: (The signature blocks) and the signatures are the same as the S-N Agreement. Did you sign such a document?

(8:13) Park: There is no such thing.

(8:16) Joo: It’s really important.

(8:18) Park: (pause) I didn’t do such a thing.

(8:20) Joo: No?

(8:20) Park: No.

(8:20) Joo: If this (agreement) is true, then everything you’ve been saying is incorrect.

(8:24) Park: It’s not true.

(8:25) Joo: It’s not true?

(8:26) Park: No.

(8:27) Joo: It’s already revealed how the $500 million went (to North Korea)…

The South Korean court already ruled that $500 million to North Korea–$450 million in cash and $50 million in non-cash merchandise–was transferred to North Korea during the investigation under the Rho Moo-hyun administration. Related to this, Park Jie-won was imprisoned for 8 months before he was pardoned, as it was determined the $500 million transferred was a bribe to hold the 2000 summit between Kim Dae-jung and Kim Jong-il, for which Kim received the Nobel Peace Prize. (For more, see Don Kirk’s book, Korea Betrayed: Kim Dae-jung and Sunshine.)

After denying about the $3 billon transfer agreement by saying it is not a fact, then saying he has no memory of it, then later claiming the document was fabricated, Park Jie-won finally admitted that he did discuss the $3 billion transfer during a closed session, but stressed that they did not sign any agreement.

Joo also expressed his concern that the CIA or other countries’ intelligence organizations may not share intelligence with South Korea, if it is concerned that it may go to North Korea. (5:40) Park retorted that such is not the case, and although he has not yet been appointed as the NIS director yet, Park stated that the CIA and other countries are sending considerably good messages. (5:51)

The document produced at the National Assembly Hearing on July 27, 2020

Economic Cooperation Agreement

The South and the North agreed as follows to show their willingness to contribute to the reconciliation and cooperation of the minjok (ethnic Koreans), the prosperity of the minjok, and the resolution of humanitarian issues.

First, on the basis of the spirit of minjok cooperation and mutual support, the south side provides the north side with $2.5 billion investment and economic cooperation cash loan to the social indirect sector for three years from June 2000.

Second, the south side provides an amount of $500 million based on the humanitarian spirit of the inter-Korean summit.

Third, working-level matters related to this will be discussed later.

Upholding the superior authority’s will

south side

Culture and Tourism Minister Park Jie-won

Upholding the superior authority’s will

north side

Joseon (North Korea) Asia Pacific Peace Committee Deputy Chairman Song Ho-kyung

April 8, 2004

경제협력에 관한 합의서

남과 북은 민족의 화해와 협력, 민족공동의 번영 및 인도주의 문제 해결에 이바지할 의지를 담아 다음과 같이 합의하였다.

첫째, 남측은 민족적 협력과 상부상조의 정신에 입각하여 북측에 2000년 6월부터 3년 동안 25억 달라 규모의 투자 및 경제협력 차관을 사회 간접부문에 제공한다.