Kook Jin Moon
November 2, 2011
Tongil Foundation
The following is a translation of an article posted Nov. 2, 2011, on the online edition of Kyeonghyang Shinmun, a nationally distributed general-interest newspaper in South Korea. This translation is provided in the interest of keeping the worldwide Tongilgyo / Unification Church community informed on this matter. Its posting here does not indicate that Tongil Foundation endorses all aspects of the content. Translation by Timothy Elder
news.khan.co.kr/kh_news/art_print.html?artid=201111020341095
Unification Church's 'War of the Princes' Over Construction Project
Jeong Hee Wan
Reporter Kyeonghyang Shinmun
Kook Jin Moon, chairman of the Tongil Foundation and fourth son of Rev. Sun Myung Moon, has filed a criminal complaint against Chung Hwan Kwak, a former chairman of the same foundation. Kwak is charged with breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes. Former chairman Kwak is the father-in-law of Hyun Jin Moon, the older brother of Kook Jin Moon and chairman of the Unification Church International (UCI) foundation.
An investigation has been initiated based on a criminal complaint alleging that former chairman Kwak caused Tongil Foundation 716 billion won in damages by providing preferences in a contract with Y22 Financing Investment, the project owner of the ParcOne construction project, the Seoul Western District Prosecutor's Office (Criminal Division 3) said on Nov. 1. The ParcOne project involves the construction of two office towers of 72 floors and 56 floors, a six-floor shopping mall and an international business Hotel on 46,465 square meters of land located in Yeouido and owned by the Tongil Foundation.
"In 2005, then-chairman Chung Hwan Kwak damaged the interests of the organization by entering into a contract that was favorable to Y22," a source in Tongil Foundation said. "At the time, Chairman Kwak was effectively in control of Y22."
"Many people expressed doubts about the contract at the time it was signed, but Chairman Kwak told people, 'Y22 is a company controlled by Rev. Moon so there is nothing to worry about,'" the source said. "But now Y22 is saying it has no relationship with former-chairman Kwak and that there were no problems with the way in which the contract was concluded."
In 2005, Y22 received from Tongil Foundation a right of superficies that allowed it to use the land for 99 years. Language was included in the contract that allowed Y22 to sell the buildings on the land. On the basis of this contract, Y22 in October 2010 attempted to sell the two office towers to Mirae Asset and Macquarie.
Tongil Foundation filed suit, calling the contract "unjust" and seeking cancellation of the right of superficies. A court sided with Y22, and Tongil Foundation has appealed the decision.
"If Tongil Foundation were able to produce clear evidence that would enable them to win in court, they would not have filed a complaint with the prosecutor's office," a person related to UCI said. "The filing of this complaint cannot be seen as anything other than an attempt to spread a negative image of former chairman Kwak."