Diamond and Diplomat

(Photo DB: AsiaN/Xinhua)

Relatives of a senior official of the Ministry of Foreign Affairs and Trade allegedly bought stocks of a Korean firm before the Ministry announced in 2010 that it had won a right to develop a diamond mine in Cameroon.

Kim Eun-seok, a senior diplomat in charge of energy and resource diplomacy, disseminated the press release on the successful bid. The share prices of the firm, C&K Mining, jumped five times within 17 days of the Ministry’s announcement on 17 December.

Kim’s brother and the brother’s wife were reported to purchase shares worth more than 100 million won ($87,000), generating widespread speculation that they might have acted on insider tips. His other relatives are also purported to have rigged the share prices of the firm.  

The Board of Audit and Inspection is currently finalizing the result of its audit and an official of the Ministry of Foreign Affairs and Trade said, “The Ministry is waiting for the audit result.”

On 16 December 2010, Cameroon offered the right of developing a diamond mine to C&K Mining. Government officials in Seoul had helped the firm win the right since they believed that the potential economic benefits would be huge to Korea.

The next day, the Ministry of Foreign Affairs issued the press release, saying the estimated amount of diamonds in the mine is 420 million carats. Some people were doubtful about the estimated volume but seventeen days after the announcement, the share prices rocked from 3,400 won to 18,000 won.

Meanwhile, Ambassador Kim Eun-seok was suspended although the audit result has not been announced yet. The Ministry of Foreign Affairs and Trade said, the suspension was an internal decision, nothing to do with legal responsibilities.

Lee Miyoung-hiyoun EnjoyMiralce@theasian.asia