[2020 National Audit] Seven Former Heads of Korea Financial Telecommunications & Clearings Institute Received 5 Million KRW Monthly for 3 Years Through 'Self-Appointment'

Hong Seong-guk, Democratic Party Lawmaker, "Former Financial Settlement Service Presidents and Standing Advisors Enjoyed Excessive Privileges Through 'Self-Appointment'"

[Image source=Yonhap News]

[Asia Economy Reporter Wondara] It has been revealed that all former presidents of the Korea Financial Telecommunications and Clearings Institute (KFTC) were 'automatically appointed' as standing advisors after retirement and received a monthly advisory fee of 5 million KRW for three years. Although they received an annual advisory fee of 60 million KRW, the number of consultations was only about 1 to 3 per month.

According to the 'KFTC Standing Advisor Appointment Status' data submitted by the KFTC to Hong Seong-guk, a member of the National Assembly's Political Affairs Committee from the Democratic Party of Korea, all seven former standing advisors of the KFTC were former presidents of the KFTC.

They received 5 million KRW per month as advisory fees and 1.9 million KRW for business promotion expenses, totaling 6.9 million KRW monthly, along with a dedicated vehicle, fuel costs, and reimbursement of actual expenses. Although the standing advisor appointment period is one year, it was extended up to a maximum of three years.

The recently retired standing advisor Mr. Lee received an annual advisory fee of 60 million KRW, annual business promotion expenses of 21.9 million KRW, and a dedicated G80 vehicle, but in reality, only provided an average of 1 to 3 consultations per month as an advisor. The six standing advisors preceding Mr. Lee all enjoyed this privilege for three years through extensions.

Representative Hong pointed out, "Although the standing advisor is appointed by the new president, it is practically a 'self-appointment,'" and added, "They have enjoyed excessive privileges better than those of retired ministers." He urged, "There is a need for institutional reform to completely eradicate these preferential treatments that have become entrenched as long-standing practices."

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