Yoon Administration Now Targets Civic Groups... Launches Full Audit of 5.4 Trillion Won Subsidies (Update)

Presidential Office Releases 'Status and Future Plans of Non-Profit Private Organization Subsidies'
Lee Gwansub Chief Secretary: "To Gain Trust from Civic Groups, Operations Must Be Transparent Including Accounting"

[Asia Economy Reporter Bae Kyunghwan] The Yoon Seok-yeol administration is conducting a full-scale survey on subsidies provided to private organizations and plans to significantly improve the management system by suspending support based on audit results. The administration intends to review not only the accounting and usage processes of the organizations but also the entire context, including the necessity of support, and plans to strengthen subsidy management by revising exemption clauses related to accounting audits.

On the 28th, the Presidential Office disclosed the "Current Status and Future Plans for Subsidies to Non-Profit Private Organizations," outlining these measures. Lee Gwan-seop, the Senior Secretary for National Planning, considered a senior chief under the Chief of Staff in the Presidential Office organizational chart, spoke publicly for the first time, announcing a government-wide full survey of subsidies to private organizations, stating, "President Yoon has ordered a comprehensive strengthening of management for national subsidies to non-profit private organizations."

Lee said, "From a long-term perspective, for civic groups to gain trust, they must operate transparently by disclosing accounting and other matters openly," adding, "Therefore, we judged that improvements are necessary in the management of subsidies to private organizations." According to the data Lee disclosed, government subsidies paid to private organizations between 2016 and 2022 totaled 31.4 trillion won. The amount increased by 2 trillion won from 3.56 trillion won in 2016 to over 5.45 trillion won in 2022. During the previous administration, the annual average increase was about 400 billion won. This figure includes all non-profit private organizations such as various associations, foundations, federations, welfare facilities, and civic groups.

The problem is that despite repeated controversies over the improper use of subsidies, no improvements have been made. A senior official from the Presidential Office said, "Even amid recurring incidents of accounting fraud in civic groups like the Justice Memory Solidarity case, subsidy management has not been conducted transparently, and similar controversies continue to reoccur in various places," explaining the background for the push to improve the subsidy management system.

First, the government has decided to conduct a comprehensive internal audit of subsidy execution status through each ministry by the first half of next year. Additionally, subsidy projects by local governments will be placed under the responsibility of ministries to improve the management system. The lax management regulations under the Subsidy Act will also be supplemented. It is known that discussions are underway to revise exemption clauses related to accounting audits and external verification of settlement reports.

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