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Advocacy Blog
Friday, November 03, 2006
Nonprofits Used as Front for Foreign Lobby
This in depth Washington Post article outlines how two groups, Korean and Malaysian nonprofits, were merely disguised as nonprofit organizations, but operated by a Washington lobbying firm, Alexander Strategy Group. Since 2001, the Korea — U.S. Exchange Council and the U.S. — Malaysia Exchange Association paid for members of Congress, Hill staffers, and relatives to go on lavish trips. The lobbying firm recently shut down, and its owner is now being investigated in relation to Jack Abramoff.
Records show that the Korea-U.S. Exchange Council was funded by the Hanwha Group, a South Korean conglomerate. The stated goal was to enhance the influence of Hanwha's chairman, Seung Youn Kim, a controversial figure once jailed for violating Korean financial law in his purchase of Sylvester Stallone's Hollywood mansion.
On tax returns the Korea — U.S. Exchange Council described itself as an educational group, but with the Justice Department the group was registered as a foreign agent financed by the Hanwha Group. Alexander Strategy was expected to set up contacts in Washington for Kim. Unfortunately, this news could have negative consequences for legitimate nonprofit organizations. See this related October, 24 Watcher story.
Posted by Amanda Adams
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