"Reasonable Amount" vs "Disclose Supporting Documents" Lee's Paper Company Contract Allegations... Ruling and Opposition Parties Clash

Lee's Primary Election Security Company... No Security Permit, Address Is CEO's Residence
Overlap of Executives with 2017 Primary Security Company
Two Quarantine Companies Registered at Contracted Quarantine Company's Address
Ruling Party "Rational Contract Signing"
Opposition "Strong Suspicion of Political Funds Law Violation"

Lee Jae-myung, the Democratic Party presidential candidate, is appealing for support at a campaign rally held on the afternoon of the 22nd at Maru Square near Bucheon Station in Bucheon City, Gyeonggi Province. [Image source=Yonhap News]

[Asia Economy Intern Reporter Kang Wooseok] Lee Jae-myung, the Democratic Party of Korea's presidential candidate, faced criticism from the People Power Party for allegedly using about 100 million won in political funds on a company suspected to be a paper company during last year's primary. The People Power Party stated that this "strongly suggests a violation of the Political Funds Act." The Democratic Party rebutted, calling it a "reasonable contract."

According to a JTBC report on the 22nd, during the primary, Lee paid approximately 163 million won in political funds to a newly established company arbitrarily selected for security purposes. However, the company did not have security permits, and its registered address was the home of the company representative, Mr. Kim. It was also confirmed that the executives overlapped with those of a security company contracted by Lee during the 2017 presidential primary for about 58 million won. Furthermore, a completely different company was found at the registered address of this company.

Additionally, Lee spent about 33 million won on a disinfection company during the last primary. The registered address of this company had a basement with a locked entrance, and it was confirmed that two disinfection companies, including this one, were registered at the same location. Moreover, it was claimed that a different company, not the one Lee's side stated was responsible, actually carried out the disinfection.

In response to these allegations, the Democratic Party's election campaign public relations team stated, "The contract with the reported company was made with the company that offered the 'most reasonable price' after price comparison," adding, "Since the purpose was to reinforce 'on-site support personnel' for the smooth progress of events the candidate attended, such as event support and guidance, there was no need to contract an expensive professional security company."

They continued, "The contract's purpose was 'reinforcement of on-site support personnel,' and since there was no need to contract a professional security company, it was unnecessary to verify whether the company had completed security business registration," but added, "However, there was a practical error in entering 'security' as the category in the election commission's electronic system."

Regarding the disinfection company allegations, they explained, "The most important principle in operating the primary office was COVID-19 disinfection. The company came early before camp staff arrived and disinfected various spaces divided by floors," adding, "The contract covered 137 pyeong (about 451.7 square meters) from July 8 to 20 at 270,000 won per day and 186 pyeong (about 615.7 square meters) from July 21 to October 10 at 370,000 won per day. Considering the daily disinfection and management of the camp spaces divided by floors, the price cannot be considered expensive."

In response to this explanation, the People Power Party's election campaign spokesperson office criticized in a 'Shorts Commentary' on the same day, stating, "There was a media report that candidate Lee Jae-myung spent political funds on a paper company without permission during the Democratic Party's presidential primary," calling it "a behavior strongly suggestive of violating the Political Funds Act."

They added, "Lee Jae-myung's side claimed there was a practical error in reporting to the election commission, stating it was 'security' when it was actually on-site support reinforcement, giving inconsistent explanations," and urged, "Lee Jae-myung should immediately disclose supporting documents instead of giving unconvincing and inconsistent false explanations."

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