(IPI/IFEX) – IPI has expressed its great concern about the apparent legal harassment of the “Joongang Ilbo”, one of South Korea’s leading daily newspapers, and its owner, Hong Suk-hyun, by government authorities. **Updates IFEX alert of 30 September 1999** On 29 June 1999, the Korean Office of National Tax Administration (ONTA) targeted for sudden tax […]
(IPI/IFEX) – IPI has expressed its great concern about the apparent legal
harassment of the “Joongang Ilbo”, one of South Korea’s leading daily
newspapers, and its owner, Hong Suk-hyun, by government authorities.
**Updates IFEX alert of 30 September 1999**
On 29 June 1999, the Korean Office of National Tax Administration (ONTA)
targeted for sudden tax audit several companies of the Bokwang Group, whose
majority shareholder is the president, CEO and publisher of the “Joongang
Ilbo,” Mr. Hong. IPI understands that the investigation marked a clear
departure from ONTA’s normal practices in the selection of corporations for
audit. The Bokwang Group has undergone no fewer than five audits in the past
ten years, most recently two years ago, after which it received a clean bill
of health. ONTA claims that the probe was a routine one, but the approach
the agency used was anything but routine: without any prior notice, a team
of fifty tax officers swooped down on the companies involved and confiscated
its accounting books.
On 17 September, ONTA accused Hong of multiple charges of tax evasion,
claiming that he had not reported US$ 57 million of Bokwang’s income. ONTA
said that it was levying fines of US$ 22 million against Hong and that it
was sending the case to the prosecutor’s office, which will decide if he is
to be indicted. IPI understands that Hong was summoned to the prosecutor’s
office on 30 September for questioning and that he faces imminent arrest,
which is tantamount to character-assassination in the Korean culture. Given
the fact that ONTA has been able to freely conduct its investigation since
29 June, IPI sees no apparent reason to take him into custody.
IPI fears that Hong is being targeted because of his daily’s highly critical
coverage of the current government. Harassment of the “Joongang Ilbo” by the
present administration dates back to the 1997 presidential election
campaign, when the paper supported President Kim Dae-jung’s main opponent,
and this latest action seems to be an attempt to muzzle the press in
anticipation of general elections scheduled for April 2000.
All of this leads IPI to suppose that the present administration may be
using the tax audits as a punitive measure against the “Joongang Ilbo” and
that if Hong were not the owner of the paper, there may never have been a
special tax probe into the Bokwang Group. As Hong holds no official position
in Bokwang and is not involved in the management of the group, but is simply
the largest shareholder, he should not he held liable for any alleged
irregularities within the group.
Recommended Action
Send appeals to the president:
against
Hong and that the “Joongang Ilbo” be allowed to operate without further
harassment
Appeals To
His Excellency Kim Dae-jung
President
Office of the President
1 Sejong-ro Chongro-gu
Seoul, South Korea
Fax: + 82 2 855 1913
Please copy appeals to the source if possible.
