Allegations come out of massive Park Chung-hee slush fund in Switzerland

Posted on : 2017-02-24 14:44 KST Modified on : 2019-10-19 20:29 KST
Lawmaker calling for investigation into Swiss bank accounts in various names, which Pres. Park may be aware of

Allegations of a secret Swiss slush fund reportedly established illegally by the Park Chung-hee regime in the 1970s are prompting calls for a government investigation and a swift return of the illegal funds.

During free speaking at a National Assembly regular session on Feb. 23, Minjoo Party lawmaker Noh Woong-rae argued for an investigation based on the “Fraser Report” (originally titled “Investigation of Korean-American Relations”) published in 1978 by the Subcommittee on International Organizations of the US House Committee on International Relations.

“According to the report, the Park Chung-hee administration illegally diverted a commission of around 10-15% of all funds on foreign loans and investments coming in, establishing secret accounts in various names at Switzerland’s largest bank, the Union Bank of Switzerland, and other financial institutions [to manage] the funds acquired in this way,” Noh said.

Minjoo Party lawmaker Noh Woong-rae (Hankyoreh file photo)
Minjoo Party lawmaker Noh Woong-rae (Hankyoreh file photo)

Noh also suggested that current President Park Geun-hye was aware of the secret fund’s existence.

“Moon Myeong-ja [a reporter in the US] reported having been tipped off that Park Geun-hye had visited Switzerland with five security agents after [Park Chung-hee’s assassination on] Oct. 26, 1979, to change the names of holders of secret accounts and given US$50,000 each as compensation to the people who accompanied her,” he said.

Noh also said that Park’s confidante Choi Sun-sil “began establishing shell companies in Germany as early as 1992 to launder secret funds in Swiss banks.”

“Those companies now number in the hundreds, and the funds laundered there are estimated in the trillions of won [billions of dollars],” he added.

Noh called for a return of “assets illicitly acquired overseas through abuse of power.”

“I urge the government to request the cooperation of the Swiss and German governments to obtain information about the secret Swiss bank accounts and German shell companies that appear to have been created by Choi Sun-sil to launder the funds,” he said.

By Oh Seung-hoon, staff reporter

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