Seoul calls Gaeseong park conduit for weapons program
The Taegeukgi, right, the national flag of South Korea, flies at Daeseong-dong, the only civilian residential area within the southern part of the Demilitarized Zone, in Paju, Gyeonggi Province, Sunday, with a North Korean flag flying at the North Korean border village of Kijong-dong. Inter-Korean relations have reached their lowest point after Seoul shut down the Gaeseong Industrial Complex, Wednesday, in response to the North’s Feb. 7 launch of a long-range rocket. The North, in turn, expelled all South Korean nationals the following day and froze factory assets of South Korean firms operating there. / Yonhap
Dispute arises over operation of complex despite knowledge of funds diversion
By Jun Ji-hye
The government said Sunday that 70 percent of the wages paid to North Korean workers at the Gaeseong Industrial Complex (GIC) were used for the development of weapons and to buy luxury goods for leader Kim Jong-un.
Unification Minister Hong Yong-pyo said the government had received reports from “multiple channels” backing up his claim, but did not provide evidence, citing confidentiality.
He did not disclose when the South detected the diversion of funds, either.
This is the first time a high-ranking government official has disclosed an exact figure confirming allegations that the money was diverted to develop weapons of mass destruction (WMDs).
Since the GIC’s opening in 2004, about $560 million has been provided to North Korean workers there, including $120 million last year, according to the Ministry of Unification.
Appearing on a TV talk show, Hong said, “Workers at the GIC were paid in cash in U.S. dollars, but the money didn’t go to the workers directly, it went to the North Korean government, instead.”
He said the money transferred to the ruling Workers’ Party was believed to be used in the same way as any foreign currency is used by the regime.
“About 70 percent of the money is believed to have been used to develop nuclear weapons or missiles, to carry out projects to commemorate the regime’s achievements, or to purchase luxury goods,” he said.
On Wednesday, the government shut down the GIC in the North Korean border city in response to Pyongyang’s Feb. 7 long-range rocket launch, which is regarded as a cover for testing intercontinental ballistic missile technology.
The North, in turn, expelled all South Korean nationals from the complex the following day and froze the factory assets of companies operating there.
Breach of UN resolution?
However, the government’s first acknowledgement of the complex as a conduit for weapons development in the North is sparking controversy.
If Hong’s remark is true, it means that the government has operated the complex even though it knew the regime was using the funds to develop weapons.
Prof. Kim Yon-chul at Inje University claimed this would be a violation of United Nations Resolution 2094, adopted in March 2013, which bans “bulk cash” transfers to the North suspected of being siphoned into developing WMDs.
“If Hong’s remark is true, and he acknowledged that the government violated the U.N. resolution, it could be a serious problem in the international community,” he said.
Kim Sung-soo, spokesman for the main opposition Minjoo Party of Korea, also said, “If Hong’s remark that the government has evidence is true, this was an acknowledgement of its violation of the U.N. resolution.”
Hong said the government had been aware of such concerns, but kept operating the complex, because it was a signal of reconciliation between the two Koreas. He said international society also understood this.
In explaining the government’s decision to shut down the GIC, Friday, Hong told a news conference that there had been concerns that money from the complex was used to bankroll the North’s development of WMDs. At the time, he also said the government had relevant data to prove this, but this not be disclosed “for security reasons.”
The minister made the Sunday’s remarks in response to criticism that the government shut down the complex too hastily, which caused enormous damage to the South Korean companies there, although Seoul did not show any clear evidence to prove the North was diverting funds.
Hong said he made the remarks in the interests of national security, so “it should not be a subject of a political debate.”
Follow Jun Ji-hye on Twitter @TheKopJihye