[2022 National Audit] Korea Railroad Research Institute Provides Services to Company Accused of Research Fund Embezzlement for 10 Years

Kim Young-sik, People Power Party Lawmaker, Points Out Issues at Government-Funded Research Institute Audit on the 18th

[Asia Economy Reporter Kim Bong-su] The Korea Railroad Research Institute (KRRI) has been criticized for needing an investigation after signing a service contract for 10 years with a company that has a history of embezzling research funds.

According to Kim Young-sik, a member of the National Assembly's Science, Technology, Information and Broadcasting Committee (Gumi-eul, Gyeongbuk, People Power Party), on the 18th, KRRI has been signing an equipment management service contract for 10 years with a company that has a history of illegal activities such as embezzlement of research funds, indicating the need for an investigation. In 2019, following the Moon Jae-in administration's push to convert non-regular workers to regular positions, KRRI established subsidiaries for cleaning and security services, but has maintained a contract with Company A for equipment services since 2013 for 10 years.

However, Company A, during its predecessor Company B's period in 2010, was found to have misused research and development (R&D) funds or falsely reported details while carrying out a Ministry of Land, Infrastructure and Transport R&D project, resulting in a five-year sanction restricting participation in new R&D projects. Due to this incident, the CEO of Company B was criminally prosecuted by the Korea Agency for Infrastructure Technology Advancement and was sentenced to one year in prison with two years of probation. Notably, Han Seok-yoon, the president of KRRI, is known to have worked at the same company as the CEO and the site manager of Company B in the past.

Assemblyman Kim pointed out, "The sanction imposed on Company B restricts participation in R&D, so general service contracts under the National Contract Act are still possible. However, maintaining a contract for over 10 years with a company that committed illegal acts in the past, and even having worked at the same company before, raises suspicions of preferential treatment."

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