Why Did Kim Sang-beom, President of Seoul Metro, Crack Down on Rehired Retirees as 'Corruption Links'?

Seoul Metro President Kim Sang-beom Faces Unprecedented Sanctions Including Investigation Request for Former Headquarters Chief and Dismissal of Machinery Director; Integrity Improvement Measures Praised by Employees Amid Efforts to Break Corruption Linked to Post-Retirement Reemployment; Attention on Whether Conflict of Interest Prevention Act Will Enhance Internal Integrity at Seoul Metro

Kim Sang-beom, President of Seoul Metro (right), is visiting Gunja Vehicle Depot after his inauguration and having a conversation with officials.

[Asia Economy Reporter Park Jong-il] Seoul Metro is facing a critical crisis.

After undergoing a massive audit by the Seoul Metropolitan Government, the company has faced unprecedented severe measures including referral of a former headquarters chief to judicial authorities and suspension of a related department head, highlighting the urgent need for measures to improve integrity.

In particular, President Kim Sang-beom has identified that the background to this situation involves high-ranking retirees continuing to be involved in bidding and other activities after retirement, and has begun preparing countermeasures.

Moreover, the National Assembly passed the “Conflict of Interest Prevention Act” to block public officials from pursuing private interests, and Seoul Metro has recognized the need to devise plans to enhance internal integrity.

Since his inauguration last year, President Kim has closely observed the company’s internal affairs and seriously noted that the integrity within the company is significantly shaken due to retirees being re-employed by related companies, prompting him to take action.

He particularly believes that retirees from the company who are re-employed by related firms influence company contracts and orders.

Accordingly, President Kim established the “Management Measures for Retirees Re-employed by Contract Companies to Improve Integrity.”

This appears to be in response to the Anti-Corruption and Civil Rights Commission’s demand last March for measures after reporting that retirees were giving inappropriate work instructions while employed at private companies.

Seoul Metro views that seniors who worked at business sites and then took jobs at affiliated organizations or performed related tasks after retirement could significantly lower the company’s integrity.

Kim, a former auditor for the Seoul Metropolitan Government and regarded as a “clean public official,” ordered the preparation of countermeasures including a “Manual for Regulating Re-employed Retirees at the Company” to improve integrity.

Under the leadership of the company’s audit office, measures were established such as ▲building and registering a management system for retiree employment status ▲creating and registering a reporting system for retiree contact status ▲notifying a “corruption behavior distancing” period during company and service bid announcements.

Following this manual, the company restricted contact with retirees re-employed by contract companies.

Accordingly, retirees re-employed at grade 3 or higher are required to register in the reporting system when having official or private contact with company employees.

In particular, retirees are prohibited from playing golf or traveling with employees. Also, meeting for meals (except when not hosted by the re-employed retiree) or meeting at locations other than the re-employed retiree’s office is forbidden.

As a result of these efforts, company employees and retirees have become inevitably cautious in their behavior.

With these measures in place, employees have expressed relief and positive responses. A company official said, “After thoroughly examining the company since his appointment, President Kim concluded that it is a major problem that high-ranking retirees are re-employed by related companies and exert influence over their juniors’ work. Without strict countermeasures, the company’s integrity is unattainable.”

Another official said, “It is a reality that employees cannot help but feel burdened when a retired senior asks for favors. It is fortunate that such measures have been established.”

Seoul Metro received the “Top Grade 1” in the 2020 Anti-Corruption Policy Evaluation hosted by the Anti-Corruption and Civil Rights Commission on March 26.

This content was produced with the assistance of AI translation services.