Lee Jae-myung: "Conservative Media's Defense of National Pension 'Breach of Trust and Fraud' Is Absurd"

Gyeonggi Province Governor Lee Jae-myung (second from the right) is holding a press conference on the "Ilsan Bridge Toll Public Interest Disposition" at Ilsan Bridge on the 3rd.

[Asia Economy (Suwon) = Reporter Lee Young-gyu] Lee Jae-myung, Governor of Gyeonggi Province, expressed disbelief and frustration upon seeing conservative media outlets defending, rather than criticizing, the illegal and unethical acts related to the toll collection on the Ilsan Bridge by the National Pension Service, which deserves punishment for breach of trust and fraud.

On the 12th, Lee posted on Facebook a message titled "Is it right for the National Pension Service to lend money to its own company (Ilsan Bridge Corporation), collect 20% high-interest rates, and then cover the losses incurred by the company (Ilsan Bridge Corporation) with Gyeonggi residents’ taxes and toll fees?" He began by saying, "As Gyeonggi Province moves to make the Ilsan Bridge toll-free through public interest disposition, conservative media backlash has been fierce."

He continued, "I question whether conservative media can make such claims despite knowing the reality of the National Pension Service’s expected returns," pointing out that "Ilsan Bridge is the only toll bridge among 28 Han River bridges, and the toll per kilometer (652 won) is five times that of the Seoul Metropolitan Area’s First Ring Expressway (109 won) and eleven times that of the Cheonan-Nonsan private expressway (59.7 won)."

He further stated, "The National Pension Service is both the sole shareholder of Ilsan Bridge Corporation and a creditor who has provided private loans at usurious interest rates (8-20% annually) in the form of self-lending," adding, "The sole shareholder (National Pension Service) deducts high-interest loan payments from the toll revenue, and when the Ilsan Bridge Corporation reports losses, it raises tolls and receives compensation from Gyeonggi Province’s taxes."

Governor Lee questioned, "Even private companies would face issues if they managed public roads in this manner, so how can a public institution engage in such behavior?" He criticized, "The National Pension Service collects exorbitant interest rates of 8-20% annually under the guise of interest from Ilsan Bridge Corporation, and then, claiming losses, receives profit guarantees funded by taxes, which is tantamount to fraud."

He expressed particular dismay, saying, "The conservative media’s argument for 'guaranteed expected returns' essentially condones self-lending interest rates of up to 20%, expects local residents to tolerate excessive tolls, and demands that if losses occur, it doesn’t matter whether high-interest is paid or not, but that the shortfall be covered by residents’ taxes."

Moreover, he questioned, "Is it right for conservative media to defend illegal and unethical acts that deserve punishment for breach of trust and fraud, and to criticize Gyeonggi Province for trying to prevent waste of residents’ tax money?" He added, "The National Pension Service has not suffered losses (through Ilsan Bridge operations so far), and even if the public interest disposition led by Gyeonggi Province takes place in October, there will be no losses."

According to Governor Lee, the investment recovery through tolls and Minimum Revenue Guarantees (MRG) has already exceeded construction costs, and as of the end of 2020, total profits of 220 billion won fall short by only about 30 billion won compared to the 250 billion won acquisition cost in 2009.

He emphasized, "Public interest disposition does not mean confiscation without compensation; compensation will be made respecting the rate of return according to legally prescribed procedures and standards," but added, "The absurd claims of conservative media and the attitude of the National Pension Service are equally disappointing."

Governor Lee criticized, "The National Pension Service has repeatedly avoided communication by maintaining its stance of refusing to refinance funds based on an implementation agreement that is over ten years old, despite repeated requests from Gyeonggi Province," and said, "Generating unfair profits through high-interest self-lending, excessive toll collection, and unjust tax support from Gyeonggi Province not only contradicts the National Pension Service’s ESG management policies but also lacks any minimal morality or rationality."

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