The People Are Struggling, but Local Governments Hold a 'Pocket Money Party'... 25.9 Billion Won of 'Blind Money' Disappears

Promotion of Improvement in Local Government Special Adjustment Grants System for Expenses such as Rewards, Overseas Business Trips, and Training Costs

The public is struggling, but local governments were caught by the government for holding a 'petty cash party.' The photo shows citizens getting tested at a temporary screening clinic set up in front of Seoul City Hall Plaza on the 9th. Photo by Mun Ho-nam munonam@

[Sejong=Asia Economy Reporter Moon Chaeseok]

#In the Chungcheong region, 21 cities and counties including A-gun used the special adjustment grants received from metropolitan cities and provinces as rewards for employees and departments. 27 cities and counties spent the special grants on overseas training sessions and business trips. Despite the spread of COVID-19, about 2 billion KRW was improperly executed and caught by the government.

#In the Gyeongsang region, 52 cities, counties, and districts including B-si spent 19.5 billion KRW on painting the exterior walls of private apartments, improving facilities of private and corporate commercial buildings, and supporting repairs of private school facilities. According to the Local Finance Act, special grants should not be used for private support subsidy projects, but the law was violated.

Some local governments were caught by the government for using special grants received from metropolitan cities and provinces for rewards, overseas business trips, and training expenses. About 25.9 billion KRW of tax money disappeared, showing a careless perception that "government money is blind money" and continuing inappropriate practices.

On the 12th, the Anti-Corruption and Civil Rights Commission announced that it would work on improving the system to ensure transparency of special grants. The commission conducted a fact-finding survey from January to June targeting 90 cities, counties, and districts nationwide in four regions: the metropolitan area, Chungcheong, Gyeongsang, and Jeolla, and found that about 25.9 billion KRW was illegally and improperly executed.

According to the Local Finance Act, 15 metropolitan cities and provinces except Jeju and Sejong provide special grant project budgets annually to 226 cities, counties, and districts within their jurisdiction using part of the metropolitan city and province tax revenue. This is to reduce financial disparities between regions. As of last year, the amount of special grants provided was 1.4255 trillion KRW.

The problem is that there have been continuous criticisms that operational status inspections and management have not been properly conducted because local governments' financial autonomy is guaranteed. In this investigation, cases of support for one-time and exhibition-type projects such as movie and drama production support were also detected.

The Anti-Corruption and Civil Rights Commission plans to promote system improvements to resolve problems revealed by the investigation, including illegal and improper special grant project planning and execution, poor project review, and insufficient post-management, covering the overall system operation.

Yang Jongsam, Director of the Policy Bureau for Improvement of Rights at the Anti-Corruption and Civil Rights Commission, said, "This investigation is meaningful in confirming that special grants can easily become petty cash for local governments depending on how they are operated," and added, "We will improve the system so that special grants are used carefully where they are truly needed by strictly limiting involvement in private profit-seeking activities during project planning and execution."

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