Prosecutors Indict and Detain Minhwahyeop Executive of North Korea Aid Group for Subsidy Misappropriation

An executive of a North Korea aid organization was prosecuted for embezzling subsidies intended for a salt support project for North Korea.

The Criminal Division 5 of the Seoul Central District Prosecutors' Office (Chief Prosecutor Lee Joon-dong) announced on the 10th that it had arrested and indicted Um Mo, an executive of the National Council for Reconciliation and Cooperation (Minhwahyeop), on charges of embezzlement and violation of the Local Subsidy Act.

Seoul Central District Prosecutors' Office, Seocho-dong, Seoul. Photo by Choi Seok-jin

According to the prosecution, Um, who worked as the head of the external cooperation team at Minhwahyeop, is accused of using 470 million won in subsidies received from Jeollanam-do from November 2019 to July 2021, which were supposed to be used for the North Korea salt support project, for personal purposes.

Additionally, Um is also charged with violating the Foreign Exchange Transactions Act by transferring about 36 million won of the embezzled funds to a North Korean embassy official in China through a nominee account, requesting facilitation of North Korea-related projects.

Minhwahyeop received 500 million won in subsidies from the Jeonnam Provincial Government in 2019 when Kim Hong-gul, a member of the Democratic Party of Korea, served as the representative standing chairman, participating in the North Korea salt support project.

At that time, Minhwahyeop entrusted the practical execution to a certain salt company and recorded in the books that about 470 million won was paid as salt purchase costs. The project was not realized due to strained inter-Korean relations and was reportedly virtually suspended from the beginning, as government approval for the export of goods was not obtained.

The Anti-Corruption and Public Crime Investigation Unit of the Seoul Metropolitan Police Agency transferred Um to the prosecution in custody on the 20th of last month.

Minhwahyeop is an organization established in 1998 during the Kim Dae-jung administration, bringing together about 200 organizations including political parties and civil society groups to prepare for national reconciliation and unification.