Global Economic Times

Democratic Party Axes Cambodia ODA Budget Amidst Allegations Linking First Lady Kim Keon-hee to Unification Church: KO YONG-CHUL Reporter / Updated : 2025-07-05 17:08:38

SEOUL, South Korea – The Democratic Party of Korea has announced the complete cut of the Official Development Assistance (ODA) loan budget to Cambodia, which saw a drastic increase under the Yoon Suk-yeol administration. This decision comes amidst burgeoning suspicions of a connection between First Lady Kim Keon-hee, a figure known as "Geonjin Beopsa" (a Buddhist monk and close associate of Kim), and the Unification Church, which had previously pursued development projects in Cambodia. Allegations suggest that a former high-ranking Unification Church official attempted to lobby Kim Keon-hee regarding these matters.

On July 5, Rep. Kim Seung-won of the Democratic Party of Korea stated on his social media account, "Late last night, we passed a supplementary budget aimed at revitalizing the economy and livelihoods, including the 'Livelihood Recovery Support Fund.' Additionally, we completely cut 80 billion KRW in loans, including 35 billion KRW for 'Kim Keon-hee's' Cambodia private cooperation loan." Rep. Kim further asserted, "We will rectify the profligate Yoon Suk-yeyeol-style ODA budget."

These developments follow a raid by the Seoul Southern District Prosecutors' Office's Joint Investigation Team on Virtual Asset Crimes (Chief Prosecutor Park Geon-wook) on April 30. The search warrant for the former presidential couple's residence reportedly specified "Cambodia Mekong River Development Project" and other ongoing issues promoted by the Unification Church as the subject of lobbying efforts. The significant expansion of Cambodia's ODA loan limit under the Yoon administration, which was increased twice from the original $700 million to $3 billion, raised suspicions that this substantial increment was a result of lobbying by a former high-ranking Unification Church official who allegedly provided gifts, including luxury items, to "Geonjin Beopsa" Jeon Seong-bae, purportedly for First Lady Kim.

In May 2022, a former head of the Unification Church's world headquarters, Yoon A-moo-gae (name withheld), claimed at an internal Unification Church event that he had met with then-President Yoon Suk-yeol on March 22 of the same year to discuss ODA. One month later, in June 2022, the Ministry of Foreign Affairs indeed increased Cambodia's ODA loan limit from $700 million to $1.5 billion. Furthermore, in May of the following year, then-President Yoon met with Cambodian Prime Minister Hun Manet and subsequently doubled the loan limit again to $3 billion. This amount is equivalent to approximately 4.2 trillion KRW at current exchange rates.

Prosecutors have been tracking the whereabouts of a Chanel bag and a diamond necklace, which Yoon A-moo-gae allegedly delivered to Jeon Seong-bae, the "Geonjin Beopsa," purportedly as gifts to lobby Kim Keon-hee. The investigation into the allegations surrounding Kim Keon-hee is currently being handled by Special Prosecutor Min Joong-ki's team.

The controversy surrounding Cambodia's ODA budget and the alleged links to the First Lady and the Unification Church underscores growing scrutiny over the transparency and integrity of South Korea's foreign aid programs. The Democratic Party's move to slash the budget reflects a broader effort to rein in what it perceives as unchecked expenditures and potential improprieties within the current administration's financial policies. This is not the first time that the Unification Church, officially known as the Family Federation for World Peace and Unification, has been involved in controversies surrounding its global outreach and political influence. The organization, founded by Sun Myung Moon, has a long history of engaging in various business and philanthropic endeavors worldwide, often leading to scrutiny regarding its financial practices and political connections.

The specific "Cambodia Mekong River Development Project" has not been extensively detailed in public reports, making the nature of the alleged lobbying efforts and the Unification Church's involvement a key area of investigation. ODA, or Official Development Assistance, is a critical component of South Korea's foreign policy, aimed at promoting economic development and welfare in developing countries. The sudden and substantial increase in the ODA loan ceiling for Cambodia has raised eyebrows, prompting questions about the rationale behind such a drastic expansion, especially when juxtaposed with the alleged private lobbying efforts.

The involvement of "Geonjin Beopsa," a figure reportedly close to First Lady Kim Keon-hee, further complicates the narrative. Jeon Seong-bae has been a subject of public interest and controversy in the past, with reports linking him to various influence-peddling allegations. The legal proceedings are now focused on determining whether the gifts allegedly exchanged constituted illegal lobbying or bribery, and if there was a direct quid pro quo between the gifts and the increased ODA budget. The special prosecutor's team faces the challenge of piecing together complex financial trails and verifying the claims made by the individuals involved. The outcome of this investigation could have significant implications for the credibility of the Yoon administration and the future of South Korea's ODA policies.