The Chaebol Returns To The Presidency 1967 [EN]: Chapter 72

72. The President in the National Assembly Audit

Assemblyman Ya sharpened his words.

“I don’t understand why a company would take losses on a project. Where did the construction funds come from?”

“As detailed in the submitted documents, half was borrowed from Innovation Bank, and half was covered by interim payments for the oil tanker construction.”

The submitted documents appeared to be in order.

Assemblyman Ma questioned CEO Jung.

“Of the $5.88 million (7 billion won) received from Vietnam, not all was deposited into the domestic Innovation Bank; $4.95 million went to Hyeonse. How did this happen?”

“At the time, effectively controlling Sector 7 was an urgent diplomatic matter. A national budget couldn’t have been planned a year in advance. So, Hyeonse purchased it, and the government reimbursed us later.”

“You’re saying you sold the oil tanker to the government at your acquisition cost?”

“That’s correct. We didn’t make a single dollar. Here are the sales documents.”

CEO Jung submitted the documents to Assemblyman Ma.

“Hmm, purchased on behalf of the government….”

Once again, Hyeonse made a credit purchase on behalf of the slow-moving administration.

Assemblyman Ma asked.

“What if the government hadn’t approved it?”

“We trusted the government, but if it hadn’t been approved, Hyeonse would have had to bear the full cost.”

This time, Assemblyman Chu questioned the head of the Nuclear Energy Agency.

“Was Hyeonse the only bidder for the nuclear power plant project?”

“Yes, that’s right. Because the National Assembly hadn’t allocated any budget, no company could afford 142.8 billion won [approximately $120 million USD]. It was a deferred payment project, with a percentage paid from electricity bills upon completion. No company could sustain that for more than four years.”

“Hmm, how did you raise that enormous sum?”

“We received 2 billion won [approximately $1.7 million USD] as an industrial loan from Innovation Bank, and the rest was raised from the Vietnam reconstruction project funds.”

“How did you win the Vietnam reconstruction project?”

“It was a negotiated contract from the United States.”

“A negotiated contract? No bidding competition? The United States isn’t that easily fooled, is it?”

“In a special situation like war, trust is a greater criterion than low cost. Hyeonse had already entered Vietnam and successfully carried out road construction projects. This was in return for the Korean government dispatching peacekeeping forces in place of the U.S. military. If we had a bidding competition, we would have lost to Japanese, Chinese, and American construction companies bidding at lower prices. Even if we had bid, we wouldn’t have achieved the same high profit margin as we have now.”

He couldn’t bring himself to say that he had helped the new leader and directed the coup.

“Ahem. Other Korean construction companies also had the opportunity to bid, didn’t they?”

“Other construction companies had no experience in overseas orders and construction, so they weren’t qualified to win the bid. Hyeonse is also working on the project as a consortium with 12 Korean construction companies, not alone. Only the bid was exclusive, but the project is being done jointly by domestic construction companies, so it’s not a monopoly.”

“Hmm, hmm.”

Assemblyman Jo asked.

“Looking at the data, the United States directly offset 10 billion won [approximately $8.5 million USD] in U.S. loans as Vietnam reconstruction project costs. Is that correct?”

“That’s right.”

“You’re saying Hyeonse repaid the government’s debt?”

“That’s how it is. The government promised to repay us later with highway tolls.”

“Look at this? Is this some neighborhood rotating credit association [a Korean informal lending circle]?”

“…….”

“There’s no receipt that the government repaid the United States. There’s no 10 billion won receipt in the national treasury on paper.”

The opposition was desperately looking for evidence of collusion between politicians and businessmen – bribes.

CEO Jung replied.

“It was a kind of countertrade settlement [a trade where goods or services are exchanged for other goods or services instead of money]. The amount the United States would pay to the Korean government was paid directly to Hyeonse. Here are the documents.”

The assemblyman, who didn’t know the concept of countertrade, felt awkward because there were documents.

“Hey, countertrade is something that works in companies, but don’t you know that the national budget must go through the National Assembly?”

“…….”

“In addition to 10 billion won from the United States, 40 billion won [approximately $34 million USD] was paid to Hyeonse for reconstruction work. The ROK [Republic of Korea] Army Corps of Engineers is also involved in the Vietnam construction. In other words, Hyeonse received a considerable amount that the Ministry of National Defense should have received, so isn’t that a privilege?”

“Although it didn’t go through the National Assembly, the amount was accurately transferred through countertrade. You can confirm it with the United States.”

“The United States? Can the U.S. Secretary of the Treasury come out here? Is that how you’re going to get away with it?”

“In the trade involving the United States, the Korean government, and Hyeonse, I have proven everything I can prove. The rest of the proof must be provided by the U.S. and Korean governments. I have no other way, Assemblyman.”

“I knew that answer would come.”

“…….”

Assemblyman Jo pulled out his trump card.

“Are there any other Hyeonse accounts in Vietnam that you have not submitted to the National Assembly audit?”

“…….”

“Is that invoking your right to remain silent?”

“…….”

Assemblyman Jo, with rising momentum, shook a copy of the account and said.

“Looking at this account, you received and withdrew 30 billion won [approximately $25.5 million USD] from someone. Isn’t this money smuggled from overseas?”

Reporters pointed their cameras at Assemblyman Jo and CEO Jung, who was cornered, and pressed the shutter.

Camera flashes went off.

CEO Jung opened his tightly closed mouth.

“I suggest a temporary recess.”

“The recess is the sole authority of the audit committee. Why is the witness telling us what to do?”

“It’s a matter that I can only answer in private.”

Assemblyman Chu, with a triumphant voice, pressed on.

“In private? Is this a joke? Is the National Assembly audit a game of make-believe? Are you going to avoid the place where the whole nation is watching and have secret negotiations?”

“It’s a diplomatically and security-sensitive matter. If you disclose diplomatic and security secrets, other countries will never talk to Korea again. If it doesn’t harm the national interest and there’s no reason to refuse a private meeting to verify the contents, why refuse?”

Assemblyman Chu flinched at CEO Jung’s counterattack.

“Hmm, all right. If it’s not a diplomatic or security matter, we’ll disclose it immediately. Let’s take a short recess.”

The cameras turned off, and CEO Jung went to the audit committee room with the documents.

And he explained.

“In Vietnam, the United States conducted political reconstruction operations before economic reconstruction. As you know, the Vietnamese president and the heads of six warlords were assassinated. To avoid leaving traces of the U.S. operation, they disguised the deposit into the Hyeonse Construction account. So, there are only deposits and withdrawals, and no details. That’s why I didn’t submit it.”

Assemblyman Jang said.

“You want us to believe that now? Isn’t it a more common-sense explanation that you diverted the money and delivered it to someone?”

“In a time of chaos like war, you have to transcend the realm of legality to rebuild a country. It’s different from a normal order project. It’s money that went into ending a war in which millions of lives were at stake. The war ended as a result of the Vietnam armistice, and Korea benefited greatly.”

“Don’t change the subject, prove it, prove it!”

“I’ve already told you everything. If this is publicly exposed, the United States will be in a very difficult position. I hope you don’t disclose it.”

“Are you going to disguise the suspicion as national diplomacy and security and get away with it?”

“You saw the aftermath of the exposed secret agreement between the U.S. and Japan – the exposure that Japan provided 90 million dollars to Washington’s back door to buy Okinawa. In the diplomatic arena, such slush funds are necessary. The secret agreement between the U.S. and Japan was exposed, and Okinawa was able to become independent as Yuldokuk [fictional name]. That’s how powerful secret transactions between countries are, with the explosive power to determine the rise and fall of a country.”

“…….”

“If the whereabouts of the U.S. slush fund in Vietnam are exposed, the United States will face international criticism, and Korea may have to withdraw from the Vietnam reconstruction project immediately. The Vietnam reconstruction project can be seen as the price of exporting a coup that replaced the old Vietnamese government.”

“Exporting a coup?”

The ruling party assemblyman stepped forward.

“Well, this is clearly a matter of national diplomacy and security. Now that you’ve explained the inside story in such detail, let’s stop at this point.”

The opposition assemblyman protested.

“What are you talking about? It’s not just a penny or two, and there’s no proof of where 30 billion went?”

“What country in the world discloses the details of the operation costs? If the diplomatic relationship with the United States goes wrong, the Vietnam reconstruction project will be suspended. The relationship between Korea and the United States will go wrong. It’s like burning down the house to catch a flea.”

The ruling and opposition parties were evenly matched, so the opposition assemblymen gathered separately to deliberate.

The National Assembly audit was resumed.

The ruling party assemblyman tried to change the atmosphere.

“We listened carefully to CEO Jung’s private explanation. It is judged to be a diplomatic and security matter without supporting data. For the sake of national interest, it should not be disclosed. If it is disclosed and causes enormous damage to the national interest, the opposition party that exposed it will have to take unlimited responsibility.”

“Are you threatening us now?”

“Don’t the people have the right to know why it’s private?”

“What?”

The ruling and opposition parties had a dogfight, but in fact, the opposition party had not yet come to a conclusion on whether to disclose it or not.

There was no better handle for a political offensive, but the aftermath was unsettling. So, they decided to decide later and put it on hold.

Assemblyman Seong of the opposition party, who returned to the National Assembly audit, said.

“Whether to disclose it or not will be decided later. In any case, while exclusively winning the deferred payment project, he received more than 7 billion won [approximately $5.9 million USD] in loans from Innovation Bank and won huge nuclear power plant, shipyard, and Vietnam reconstruction projects. It can’t be anything but a privilege among privileges.”

CEO Jung retorted.

“Assemblyman, you are only evaluating based on the results. At the time of the order, we desperately pushed forward with the company’s fate at stake because we had no funds. It is a project that other companies couldn’t even dare to undertake, and it was carried out like a public enterprise for the sake of the country.”

“Hey, witness! You’re talking as if you’re doing an independence movement now, but companies pursue profits. You bet with the company’s fate at stake because it was profitable, right? The money Hyeonse earns will eventually go into CEO Jung’s pocket and be passed on to his children, right? Don’t mistake yourself for a public enterprise or a public official.”

“…….”

The President was monitoring the status of the National Assembly audit in his office without missing anything.

The National Assembly audit with similar arguments continued for three days.

As the opposition party, which had not found any evidence of collusion between politicians and businessmen, was becoming increasingly tempted to expose the 30 billion won.

* * *

The Blue House Office.

The President called the Chief of Staff and said.

“I will appear as a witness in the National Assembly audit. Sound it out with the National Assembly.”

“Your Excellency? Then it will be a hearing, not a National Assembly audit?”

“National Assembly audit, hearing, what’s so important about that? It is important to resolve the suspicion by any means.”

“Yes, Your Excellency!”

* * *

The National Assembly.

The news was delivered to the ruling and opposition audit committee members.

“Really? The President is going to appear as a witness himself?”

“The Chief of Staff of the Blue House came and said it.”

“Are you going to break through head-on? Then let’s have a hearing….”

“A hearing is good! I agree.”

It was the first time that the President had appeared at the National Assembly audit.

Usually, even if the opposition party applied for a witness, the ruling party opposed it or did not attend, but this broke the custom.

* * *

The President took an oath and sat in the witness seat.

It was a de facto hearing.

The attention of the entire nation was focused on the National Assembly audit.