Allegations of Favoritism in the Delegated Operation of the Chinese Golf Practice Range by Korea Tourism Organization

Approval of Sublease and 2-Year Contract Extension for Employee Who Resigned 1 Year Ago... 7 Years of Long-Term Consignment Operation

Golf Course Side "Proceeding Normally with Legal Advisory Team's Assistance... Will Improve Immature Aspects"

[Jeju=Asia Economy Honam Reporting Headquarters, Reporter Park Chang-won] Controversy has arisen over allegations of preferential treatment in the consignment management of Jungmun Golf Course owned by the Korea Tourism Organization.

Former employee A, who resigned from Jungmun Golf Driving Range, subleased and operated it for five years, and earlier this year, the contract was extended for another two years, raising suspicions not only about the long-term operation but also about the initial operator selection process.

According to industry sources on the 9th, Jungmun Golf Course selected operator B through a competitive bidding process in January 2017 for the consignment operation of Jungmun Golf Driving Range and signed a contract for two years, which would automatically extend by one year unless there was a special cause for termination.

In May of the same year, Mr. B requested to extend the contract period to five years in exchange for a facility investment of 300 million KRW in the driving range, which Jungmun Golf Course accepted.

However, in the following year, 2018, Mr. B gave up the consignment operation in less than a year.

Typically, when an operator gives up, a re-bidding process is conducted to select a new operator. However, Jungmun Golf Course allowed subleasing to former employee A, citing that subleasing was possible with prior approval.

Then, earlier this year, a two-year contract extension was signed again.

Mr. A resigned in 2017 and was responsible for game management during his tenure at Jungmun Golf Course. He also partially managed the driving range and was known to have served as a referee in the KPGA professional preliminary competitions in the Jeju region.

Experts have raised suspicions about the Korea Tourism Organization’s Jungmun Golf Course’s incompetence and excessive convenience during the seven-year long-term lease process of the Jungmun Golf Driving Range.

First, they argued that operating a golf driving range is a specialized field, requiring placement of sports instructors if there are more than 20 hitting bays, which differs from general convenience stores or restaurant operations. Selecting an operator solely based on the bid price without evaluating the operator’s capability is unusual.

Second, they pointed out that approving a change to a five-year long-term lease contract on the condition of a 300 million KRW facility investment, without official verification from construction or supervision companies, based solely on the operator’s claim, can be seen as preferential treatment.

Third, when operator B gave up operation within a year citing excessive investment and management difficulties, a re-bidding process should have been conducted. However, former employee A, who had resigned less than a year prior, succeeded the rights through subleasing and also signed an extension contract this year, which experts argue requires strict application of conflict of interest standards under the Public Officials Ethics Act.

Mr. C, who has been supplying to public institution convenience stores and restaurants for over ten years, emphasized, “Although I have supplied for over ten years, I have never seen an operator change through subleasing,” calling it a special case.

A golf course user criticized, “Allowing business activities at the turf nursery where grass is grown for the driving range and the contract procedures favoring one person exclusively suggest that something is going on.”

A Jungmun Golf Course official explained, “There are elements that could cause misunderstandings, but we proceeded properly with the assistance of a legal advisory team and will improve some immature parts going forward.”

Jeju=Asia Economy Honam Reporting Headquarters, Reporter Park Chang-won captain@asiae.co.kr

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