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Dong Hwa Titanium produces titanium dioxide, which is marketed in Korea to
paint, rubber, and ink industries. It was established in 1973 and became a joint
venture with UC-Korea in April 1974. Sun Myung Moon was chairman of the
board and owner of 90.5 percent of the stock. A Japanese national named Yaji
Junsei was listed as owner of 6.6 percent of the stock. Dong Hwa's assets were
put at $2.2 million, 1975 gross sales at $1,302,000, and profits at $164,000.
According to the State Department information, the combined 1975 assets of the
five businesses mentioned above were $14,970,000, with 1975 profits of
$1,910,000, net worth of $7,410,000, and total 1975 sales of $18,627,000. The
profit ratios of the Moon businesses were "slightly above average" for Korean
businesses.
The State Department reports also stated that the executives in all five
businesses were trained at Tong II Industries and that all important shareholders
were active UC members.
A separate section of the State Department report commented that official
Korean records indicated that the UC-Korea claimed
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$3,600 in assets; however, published financial statements showed assets, as of
December 31, 1975, to be $4,535,000, with a net worth of $4,516,000.
The State Department's information was derived from World Traders Data
Reports, which in turn are generally based on public sources and inquiries of
industry representatives, and not on audits.
Earlier data gathered by the Export-Import Bank showed Tong I1 Industries
1972 sales to have been $400,000;(299) if both the Eximbank and State
Department figures are accurate, Tong Il's sales volume in 1975 was 10 times
higher than in 1972. This increase was consistent with executive branch reports
and with the statements of a number of persons interviewed by the subcommittee
to the effect that Tong Il's fortunes rose with the development of ROK defense
production.
A UC publication contained an article on the titanium plant which described
how the UC took over its operation in 1972.(300) After that, it was managed and
operated mostly by UC members. In describing future plans for the factory, it was
noted that titanium is used in aircraft and spaceship production. In another UC
publication, Neil Salonen reported on a tour of the titanium plant and Moon's
plans for its expansion:
"Father wants to expand and build the factory as soon as possible. We have a
monopoly on the refining of titanium in Korea and actually a large corner on the
world market because we can do it in a very sophisticated way."(301)
In January 1977, the ROK Government charged Kim Won Pil and other
officers of Il Hwa Pharmaceutical Co. with conspiring to evade over $12 million in
taxes, in addition to other offenses. A State Department cable reported that the
specific charges included:
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