Prosecutors Summon Former Fiscal Management Bureau Chief of Ministry of Economy and Finance in Connection with 'Ulsan Mayor Election Interference' Case

Former Ulsan Mayor Candidate Kim Ki-hyun, who claimed that Song Cheol-ho's Ulsan mayoral camp discussed pledges with the Blue House before the June 13 election, is holding a press conference on December 20 last year at the Seoul Bar Association building in Seocho-gu, Seoul. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Choi Seok-jin] It has been confirmed that the prosecution, investigating allegations of interference in the Ulsan mayoral election, recently summoned and questioned an official from the Ministry of Economy and Finance. This official is known to have been responsible for the preliminary feasibility study (PFS) of the Ulsan Industrial Accident Mother Hospital, a campaign pledge of former Ulsan Mayor Kim Gi-hyeon.

After investigating allegations of a Blue House-directed investigation related to the election and indicting 13 people including Ulsan Mayor Song Cheol-ho in January, the prosecution appears to be continuing investigations related to the election pledges of former Mayor Kim and Mayor Song following the general election.

According to the legal community on the 16th, the Public Investigation Division 2 of the Seoul Central District Prosecutors' Office (Chief Prosecutor Kim Tae-eun) summoned and questioned a senior official A, who previously served as Director General of the Fiscal Management Bureau at the Ministry of Economy and Finance, on the 14th.

The prosecution reportedly questioned A about the circumstances under which the Industrial Accident Mother Hospital failed the PFS and the background of the announcement made in May 2018, just before the local elections.

A is known to have served as Ulsan City’s Deputy Mayor for Economic Affairs during former Mayor Kim’s tenure and is well acquainted with the promotion of the Industrial Accident Mother Hospital project.

The prosecution is investigating whether the Blue House exerted influence on the Ministry of Economy and Finance, which was responsible for the PFS, to support the ruling party candidate Mayor Song’s pledge and to derail the pledge of his opponent, former Mayor Kim.

During the local elections, Mayor Song pledged to establish a public hospital for ordinary citizens, while former Mayor Kim promised to establish a mother hospital specialized in industrial accidents.

The Industrial Accident Mother Hospital had been a long-standing project in the Ulsan region since 2003, but the project was scrapped following the government’s announcement on May 28, 2018, just 16 days before the local elections, that it had failed the PFS.

In January, the prosecution indicted 13 people related to the 'election interference and Blue House-directed investigation' allegations, including Mayor Song, on charges of violating the Public Official Election Act. The indictment stated that Mayor Song’s side requested former Senior Administrative Officer Jang Hwan-seok of the Balanced Development Secretary’s Office and former Social Policy Secretary Lee Jin-seok to delay the announcement of the PFS results for the Industrial Accident Mother Hospital until the public hospital pledge was established.

Former Administrative Officer Jang, who also encouraged Mayor Song’s side to establish the public hospital pledge, reportedly agreed to delay the PFS announcement.

In December of last year, the prosecution conducted a search and seizure of the Feasibility Review Division of the Fiscal Management Bureau at the Ministry of Economy and Finance and the Korea Development Institute (KDI), securing work documents and computer hard disks related to the PFS investigation.

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