Parent Federation Scandal

Korea Parent Federation’s Financial Source Disclosed, "Cheong Wa Dae Ordered the Demonstrations"

2016.04.21 18:41
Kim Hyeong-gyu, Yi Yong-wuk

Hundreds of Millions of Won Received Through a Bank Account under Another Name: A Parent Federation Scandal?

Both Gathering Evidence: On April 20, members of the Democratic Police Veterans Association of the Mugunghwa Club and the Citizens Coalition for Police Reforms visited the Korea National Police Veterans Association and held a press conference condemning the association for allegedly providing illegal financial support to the Korea Parent Federation. In the process the members quarreled with members of the national police veterans association. Yi Jun-heon

Both Gathering Evidence: On April 20, members of the Democratic Police Veterans Association of the Mugunghwa Club and the Citizens Coalition for Police Reforms visited the Korea National Police Veterans Association and held a press conference condemning the association for allegedly providing illegal financial support to the Korea Parent Federation. In the process the members quarreled with members of the national police veterans association. Yi Jun-heon

As circumstances point to the possibility of the Federation of Korean Industries (FKI) providing hundreds of millions of won to the Korea Parent Federation (KPF), allegations have been raised that perhaps a certain figure or group lies behind the federation.

According to the Kyunghyang Shinmun coverage on April 20, the Korea Parent Federation held several demonstrations supporting the views of the Federation of Korean Industries last September-December, when the federation received a huge amount of money from FKI in a bank account under another name. The rally calling for the enactment of the labor-related bills is a typical example. The bills in question expand the areas where businesses can hire temporary agency workers as well as the contract period for such workers, so the labor calls these bills "bad laws," but they would be favorable to the business federation once they are enacted.

The bank account in question also showed that money was transferred to Kim, head of the North Korean Parent Federation, which works alongside the Korea Parent Federation. This suggests that the parent federation may have drawn North Korean defectors to their demonstrations with the money they received from FKI.

In the past, the Korea Parent Federation made extreme arguments on social and political issues: they were against identifying the truth behind the Sewol tragedy; they supported the state published history textbooks; they called for the disbandment of the Korean Teachers and Educational Workers' Union; and they condemned the leaders of the opposition parties. Thus many raised allegations that a powerful authority stood behind the activities of the parent federation.

The owner of the parent federation's unofficial bank account is a Christian foundation, leading some experts to believe that the National Intelligence Service (NIS) might have something to do with it. A representative of a group of North Korean defectors said, "There are cases where an NIS agent creates a missionary foundation after being ordained as a reverend and provide funds to groups of North Korean defectors that engage in activities supporting the government." An official from the intelligence service retorted such allegations as "groundless."

Sisa Journal quoted the words of a key figure in the parent federation and reported, "Cheong Wa Dae ordered us to hold a demonstration supporting the comfort women agreement between South Korea and Japan early this year, but we refused." This person mentioned an administrator in the office of the secretary for public communication under the senior secretary for political affairs at Cheong Wa Dae as the person who ordered such a demonstration.

This administrator told the Kyunghyang Shinmun, "The Korea Parent Federation also held a press conference near the comfort women statue on January 6," and claimed that the report was incorrect. However, he remained silent on whether or not Cheong Wa Dae contacted the federation to order the demonstrations.

The three opposition parties demanded an investigation into the truth by the National Assembly. Lee Jae-kyung, spokesperson for the Minjoo Party of Korea said, "The National Assembly should launch an investigation on allegations that the Korea Parent Federation paid North Korean defectors to participate in their rallies and that it received financial support from the Federation of Korean Industries and the Korea National Police Veterans Association."

The Citizens' Coalition for Economic Justice plan to request an investigation by the prosecutors on April 21 concerning the alleged violation of the Act on Real Name Financial Transactions and Confidentiality as well as the evasion of taxes.

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