Former Senior Secretary for Civil Affairs Kim Jowon Who Said 'Buy Kai Stocks'

[Image source=Yonhap News]

[Asia Economy Military Specialist Reporter Yang Nak-gyu] "If you trust only me and buy Korea Aerospace Industries (KAI) stocks, you will become rich."

In October 2017, former KAI President Kim Jo-won, who had just taken office, visited the Ministry of National Defense press room. Kim told reporters about KAI's prospects by encouraging them to buy stocks. He did not mention his management philosophy or other details. Among reporters, there was criticism about whether it was appropriate for the new president leading the aviation industry to make such remarks.

At the time Kim took office, KAI stock was trading above 58,000 won per share. Three years later, on the 11th, KAI stock had halved to 24,000 won. Kim's forecast had missed the mark. Since Kim's appointment, KAI suffered a series of accidents and missed major orders.

Just one year after Kim took office, in July 2018, a Marine Corps 'Marinon' (MUH-1) helicopter crashed. The cause of the fatal crash that took the lives of soldiers was found to be a defect in a part called the 'rotor mast.' This also cast a shadow over aviation exports. KAI had set a goal to sell about 200 Surion helicopters to Southeast Asia and Latin America within 15 years.

KAI also faced defeat in the bidding war. Partnering with Lockheed Martin, KAI lost the bid for the U.S. Air Force's $16.3 billion (about 18.1745 trillion won) Advanced Pilot Training (APT) replacement project. The U.S. Air Force selected the Boeing and Saab consortium as the preferred negotiation partner. The contract alone is worth $9.2 billion (about 10.2 trillion won).

KAI stated, "Boeing was selected based on the lowest bid selection method. Lockheed Martin cooperated with KAI to participate in the bid at a strategic price, but due to the significant price difference caused by Boeing's low bid, we were eliminated."

Because of this, there were criticisms that the situation was foreseen when Kim Jo-won, a former Secretary General of the Board of Audit and Inspection, was appointed as KAI president. An industry insider said, "With Kim, who is not a professional manager, being appointed, many export-related personnel were restructured, which may have weakened export competitiveness."

Kim moved to the Blue House as Senior Secretary for Civil Affairs but continued to face controversies. When it was revealed that he owned two houses in Gangnam, Kim listed his Jamsil apartment for sale at about 200 million won above market price. The opposition party suspected that Kim deliberately set a high asking price to avoid selling. However, the Blue House denied this, stating that Kim did not set the asking price and was determined to sell, sparking further controversy.

In fact, a listing presumed to be Kim's Jamsil apartment appeared on a real estate portal with an asking price of 2.2 billion won. Considering that other listings of the same apartment complex and size (exclusive area 123㎡) were priced between 1.9 and 2 billion won, Kim's asking price was set more than 200 million won higher.

Even until his resignation, rumors persisted. On the 10th, Kim did not attend the Senior Secretary meeting presided over by President Moon Jae-in. At a time when the acceptance of Kim's resignation had not yet been decided, Kim was absent from the meeting. Other senior secretaries, including Kang and Kim Geoseong, who were also scheduled to be replaced, as well as five other aides who submitted their resignations on the 7th, all attended. Kim had not come to work since the day before and was also found to have left the high-ranking officials' messenger chat room at the Blue House.

Regarding this, Jin Sung-jun, a member of the Democratic Party of Korea, targeted former Blue House Senior Secretary for Civil Affairs Kim Jo-won, who did not attend meetings after submitting his resignation, saying, "The ending was not clean." Kim, who owned two apartments in Gangnam, left the Blue House amid controversy over housing disposal.

On the morning of the 11th, in an interview with CBS Radio's 'Kim Hyun-jung's News Show,' Representative Jin said, "Usually, outgoing senior secretaries visit the Blue House press room to say their final goodbyes, but Kim did not show up," revealing this.

This content was produced with the assistance of AI translation services.