South Business Are Cheated of 30 Billion Won by North

North Korea did not pay 6.5 billion won of deferred payment export, which is part of the deferred payment export contract amounted 30 billion won with South`s business including Samsung and Hyundai.

The North seems to have no intention or capability to pay the rest of the payment, 23.5 billion won, which is due soon.

The Donga Weekly reported the exclusive documents of the Unification Ministry including `the Present State of Inter-Korean Trade` and various contracts of the companies.

According to the documents, South`s business such as Hyundai Asan and Hyundai Merchant Marine Co. Ltd, and Samsung Electronics, made a contract of total 30 billion won from 1998-2001 with North`s Asian Pacific Peace Commission (Chairperson Kim Yong-Soon) and delivered vehicles and TVs to the North.

However, APC has delayed its payment, ignoring the contract that the North `will pay from 1999` on the ground of the bad economic situation of the North.

In addition, it seems inescapable of the criticisms that the contract was unreasonable and a part of `charity to the North` since the contract did not make any sanction clear in case of non-fulfillment of the contract.

Hyundai made a contract to set off the deferred payment against the Mt. Keumgang Tour payment but it never took place.

A related source from Samsung group said in terms of the deferred payment export, "the export of color TVs was like a reward for visiting the North. The contract was made by the recommendation of the government."

Therefore, it seems that the government disguised the grant-type aid with export to avoid the criticisms about the government charity policy to the North.

sk21@donga.com