Board of Audit and Inspection: "KORAIL Paid 73.6 Billion Won More in Performance Bonuses"

Board of Audit and Inspection Announces Results of Korea Railroad Corporation Institutional Audit... Issues Raised on Handling of Railway Member Reservation Deposit Income

[Asia Economy Reporter Ryu Jeong-min] The Korea Railroad Corporation paid 73.6 billion KRW more in performance bonuses for the 2019 management evaluation, according to an audit report by the Board of Audit and Inspection.

On the 23rd, the Board of Audit and Inspection announced the results of the regular institutional audit of the Railroad Corporation. According to the Board, the Railroad Corporation paid approximately 336.2 billion KRW in 2019 management evaluation performance bonuses and internal evaluation bonuses based on the Public Institution Management Performance Evaluation by the Ministry of Economy and Finance.

The Board of Audit and Inspection pointed out, "the Railroad Corporation paid about 73.6 billion KRW more than the properly calculated amount excluding regular bonuses and job role allowances according to the Ministry of Economy and Finance guidelines."

[Image source=Yonhap News]

The Board requested the president of the Railroad Corporation to be cautious to prevent excessive payment of performance bonuses. It also notified the Minister of Economy and Finance to prepare measures to reflect the excessive payment by the Railroad Corporation in the 'Public Institution Management Performance Evaluation.'

During the process of returning 41.2 billion KRW of reservation deposits from railroad members, the Railroad Corporation was found to have not actively informed the recipients and recorded 7 billion KRW as revenue on the grounds that the debt had expired.

The Board of Audit and Inspection urged the president of the Korea Railroad Corporation to ensure that there is no passive handling of return notifications regarding reservation deposits.

Issues were also found in the management of employee uniform contracts at the Railroad Corporation. The Board pointed out, "the Railroad Corporation did not request testing and inspection of sample fabric, which serves as the quality inspection standard for finished products, and accepted delivery of employee uniforms in 2017-2018 without determining whether the finished product fabric passed inspection."

The Board demanded accountability from Mr. A, who improperly handled the employee uniform purchase contract management, and requested caution for related personnel.

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