Former Administrative Director of Ungdong Academy Testifies "Most of the 3.5 Billion Loan Went to the Cho Family"

Trial Resumes for Former Minister Cho Kuk's Brother Cho Gwon
"30 Billion Won Was Enough for New Construction Costs"

[Image source=Yonhap News]

[Asia Economy Reporters Seongpil Cho and Seungyun Song] Testimony presented in court claimed that most of the 3.5 billion KRW loaned by Dongnam Bank to the private school foundation Ungdong Hakwon ended up in the hands of the family of former Minister of Justice Cho Kuk. This money was borrowed by Ungdong Hakwon between 1995 and 1998 under the pretext of construction costs, but its usage remained unverified and it disappeared without a trace.

On the 9th, during the trial of Cho Kuk’s younger brother, Cho Kwon, held at the Seoul Central District Court Criminal Division 21 (Presiding Judge Kim Miri), uncle Park testified as a witness, stating, "Since the defendant Cho was involved in construction, he would know well," and added, "If I put my hand on my chest and think about it, 3 billion KRW would have been sufficient for the new school building construction costs." Park served as the administrative director responsible for managing Ungdong Hakwon’s affairs from 1993 to 2007.

Cho Mo (52), the younger brother of former Minister of Justice Cho Kuk, who is under suspicion of recruitment corruption and sham litigation involving the school foundation Ungdonghakwon operated by the family of former Minister Cho Kuk, is entering the courtroom to attend the warrant hearing held at the Seoul Central District Court in Seocho-gu, Seoul on the 31st. Photo by Kang Jin-hyung aymsdream@

During cross-examination, Park said, "Cho Byeon-hyun, former chairman of Ungdong Hakwon and father of former Minister Cho, repeatedly mentioned at the board meetings that he wanted to increase the construction budget," and added, "The construction should have been feasible with the initial loan amount from the bank, so I found it strange." He further testified, "Chairman Cho tried to use Ungdong Middle School as a means to increase his assets, and for this reason, I thought he was unethical as an educator."

The 3.5 billion KRW was the starting point of the 'Ungdong Hakwon suspicion.' Ungdong Hakwon did not use this money to pay construction fees or to repay the bank loan. The whereabouts of the loan funds became unknown. Park claimed, "Unlike other construction works, civil engineering projects are said to have invisible costs," and asserted, "Chairman Cho probably pocketed most of the loan funds." When asked by Cho’s defense whether there was a possibility that actual costs increased in other construction projects, he replied, "Absolutely not." After the witness examination ended, Presiding Judge Kim expressed frustration, saying, "This case involves family members, so there seems to be a lot of emotional aspects," and added, "Since the father of former Minister Cho has passed away, it is difficult to inquire further."