Seoul City Accuses Operator of Nodeul Island Complex Cultural Space of Embezzling Project Funds

Allegation of Embezzling 56 Million Won from Private Consignment Project Funds

[Asia Economy Reporter Lim Cheol-young] The Seoul Metropolitan Government Audit Committee announced on the 2nd that it has reported the operator to the Seoul Metropolitan Police Agency on charges of embezzling 56 million KRW from the private consignment project funds during the audit of the creation and operation status of the Nodeul Island complex cultural space.

A Seoul city official explained, "During the Seoul city’s internal audit conducted from August 30 to the 8th of last month, we detected suspicions that the operator of the Nodeul Island complex cultural space embezzled private consignment project funds and reported the operating company to the Seoul Metropolitan Police Agency on the 13th of last month. Additional verification procedures are currently underway."

As a result of this internal audit, the Audit Committee found that although the private consignment project funds should have been returned to Seoul city after the end of the fiscal year according to relevant regulations, the operator created false contracts to spend the funds and then reclaimed the payments, thereby creating a slush fund of 56 million KRW. In particular, it was discovered that the operator used the slush fund for money laundering purposes by signing a side contract without Seoul city’s approval while concluding a service contract with a third party and exchanging slush funds.

If a private consignment contractor embezzles private consignment project funds, they are subject to imprisonment for up to 10 years or a fine of up to 30 million KRW under the Criminal Act. Lee Gye-yeol, the audit officer, stated, "We plan to take firm measures such as reporting to investigative agencies if any illegal activities such as embezzlement of project funds by private consignees or subsidy project operators are discovered in the future," adding, "We will also strengthen guidance and supervision to prevent similar cases from recurring."

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