South Korea: B. C. Lee's World

In the coastal city of Ulsan last week, old and new Korea came into symbolic confrontation. The spring mists filtering across the landscape were mixed for the first time with ammonia clouds, and Korean farmers wearing traditional costumes stood side by side with businessmen and government officials in trim, Western-style business suits. All had gathered for the dedication of the Korea Fertilizer Co.'s new urea plant, which, with an annual capacity of 330,000 tons of fertilizer, will be one of the world's largest. Presiding over the ceremonies, suitably enough, was Byung Chull Lee, 57, the plant's owner, who is the richest and by far the most controversial businessman in South Korea.

Grace & Karate Chops. Lee's approach to business is a combination of Oriental grace and karate chops; the combination has made enemies for him ever since he left college in Japan 33 years ago and went into business as a rice miller. By the end of World War II, Lee had a whole string of businesses and a special relationship with President Syngman Rhee; he was one of a chosen few to whom Rhee doled out, at the low official exchange rate, precious U.S. dollars that had been acquired by sales of valuable tungsten. For his profitable dealings in "tungsten dollars," Lee was branded an "illicit profiteer" when Rhee was overthrown in 1961 by Chung Hee Park. He fled to Japan, returned to Korea and resumed operations after Park decided he needed Lee's ability and overseas business contacts to help modernize South Korea. Lee was forced to pay $4,400,000 in back income taxes and tax-evasion penalties, and his shares in three banks were confiscated by the Park administration. Now back in grace, Lee got $6,000,000 in government-backed loans to finance the fertilizer plant. The remainder of the money included a $43.9 million loan from Japan's Mitsui & Co. and a $1,000,000 investment by International Ore and Fertilizer Corp. of New York, which will market excess output abroad.

The Korea Fertilizer Co., during its 18 months of construction, involved Lee in further controversy, however. In the midst of construction, chemicals that had entered the country duty-free for use in fertilizer making were sold to a saccharin-processing firm at a $40,000 profit. As a result, Lee's son, Chang Hee Lee, was sentenced to five years in prison for smuggling; he is appealing.

In the course of that controversy, an opposition delegate to the National Assembly, shouting "Eat this saccharin!" threw the Assembly into confusion by hurling a can of human excrement at a group of surprised members of Park's Cabinet. He was protesting what he charged was government connivance in the smuggling. The Cabinet ministers resigned in anger, but Park quickly reappointed them. Lee finally smoothed over the situation by offering the government a 51% interest in the new fertilizer plant.