Using Tricks to Protect Money for North Korea…Im Jong-seok and GyeongMoonHyeop Blocked the South Korean Government Redemption of $210,000 (₩230 Million)

2020-10-5, Chosun Ilbo [TRANSLATION]

The Foundation of Inter-Korea Cooperation [literal translation: South-North Economic and Cultural Cooperation Foundation, 남북경제문화협력재단; GyeongMoonHyeop (경문협) for short] is a private organization registered with the Ministry of Unification [Lee In-yong is the Minister].  It was revealed on October 4, 2020 that when the royalties [that GyeongMoonHyeop has been collecting] that were to be provided to North Korea were about to be reallocated to the South Korean government coffers (Ministry of Finance), GyeongMoonHyeop blocked it with “tricks.”  

The Ministry of Unification, which has administrative and supervision authority, also said that “copyright fees [that were entrusted to the South Korean court, because GyeongMoonHyeop cannot send the money to North Korea due to sanctions] due to expire [therefore, automatically reverts to the South Korean Treasury] will be withdrawn and re-deposited [to South Korean Court] on an annual basis,” noting that they will protect North Korean royalties through similar “methods” in the future. 

Currently, the head of GyeongMoonHyeop is Im Jong-seok, the Special Advisor for Foreign Affairs and former Blue House Chief of Staff. 

According to data that the Ministry of Unification submitted to National Assemblyman Kim Ki-hyun’s (김기현) office at the People Power Party, from 2005 to 2008, a total of ₩792,000,000 million (~$720,000) was paid to North Korea in return for using their videos, writings, and other content.  Since the suspension of royalty transfers to North Korea following the 2008 fatal shooting of Park Wang-ja (박왕자) at Geumgang Mountain, the accrued royalty for [but not paid to] North Korea is approximately ₩2.1 billion ($1.9 million) since May 2009.  GyeongMoonHyeop has acted as an agent of North Korea by collecting royalties from South Korean broadcasters. [Note: Using $1=₩1,100]

If a claimant does not withdraw their deposit from court within 10 years from the day that they are able to withdraw it, the money is reallocated to South Korean’s Ministry of Finance.  Under normal circumstances, the ₩22,660,000 (~$20,600) deposit from 2009 and the ₩207,900,000 (~$189,000) from 2010 were to be reallocated to South Korea’s Finance Ministry.  However, as the reallocation date neared, GyeongMoonHyeop protected North Korea’s assets through a “recovery and re-entrust” [withdrawing the money, then re-depositing it] strategy. This method is used to withdraw the 2009-2010 royalties of ~₩230,000,000 (~$210,000), which came close to the time of reallocation to the South Korean state coffers, and re-depositing into the courts.

In a written reply to Assemblyman Kim Ki-hyun’s office, the Ministry of Unification said that “the South-North Copyright Center plans to recover and re-entrust each year [for the amount nearing the 10-year expiration date].”  They are effectively saying that they will allow GyeongMoonHyeop to hold on to the ₩107,000,000 (~$97,300) in royalties [for North Korea] that are scheduled to be re-allocated to the South Korea’s Ministry of Finance next year using the same method.

GyeongMoonHyeop is also currently resisting a court ruling that would use North Korean assets (North Korean copyright fees) to compensate South Korean prisoners of war (POWs), who suffered from forced labor during the Korean war.  When the POWs’ defense counsel filed for a “seizure and collection of credit order” on North Korea’s royalties following the court ruling, GyeongMoonHyeop insisted that “original creators like the North Korean Central News Agency receive these copyright fees, not North Korea.” In this regard the legal circle questioned “can the North Korean Central News Agency actually independently claim the copyright fees in a dictatorship like North Korea?” They asserted that “it’s an unreasonable logic being used to protect the North’s assets.” 

GyeongMoonHyeop, the private nonprofit organization established for inter-Korea exchanges in 2004, has deep relationships with influential members of the Moon administration.  After serving as the second chairman of GyeongMoonHyeop (2005-2007), Special Advisor for Foreign Affairs Im Jong-seok (임종석) is once again the head of the organization.

Lawmakers from the Democratic Party of Korea–Song Young-gil (송영길), the National Assembly’s Chairman of the Foreign Affairs and Unification Committee, as well as Woo Sang-ho (우상호) and Hong Ihk-pyo (홍익표), both prominent figures in the Seoul metropolitan area, all have worked as members of the board of directors at GyeongMoonHyeop.

People Power Party lawmaker Kim Ki-hyun said that “if we continue giving national assets to North Korea in this submissive manner, the brutal killing of our people will not stop,” adding that “North Korean copyright fees should immediately be recovered and used to actually compensate victims of forced labor.”

Source:  https://www.chosun.com/politics/politics_general/2020/10/05/DVGY5RXD6VADDN3ZMN3IQUI3UM/