Police Launch Investigation into Former Statistics Korea Chief Kang Shin-wook over Alleged Data Manipulation

Kang Shin-wook, former Commissioner of the Korea National Statistical Office. [Image source=Yonhap News]

[Asia Economy Reporter Choi Taewon] The police have launched an investigation into former Statistics Korea Commissioner Kang Shin-wook, who was accused of major national statistics distortion during the Moon Jae-in administration.

According to the police on the 6th, the Seoul Metropolitan Police Agency assigned the case against former Commissioner Kang to the Anti-Corruption and Public Crime Investigation Unit. The civic group Seomin Minsaeng Countermeasure Committee (Seominwi) filed a complaint with the Seoul Metropolitan Police Agency on December 22 last year, accusing former Commissioner Kang of abuse of authority, coercion, and violation of the Statistics Act.

Former Commissioner Kang was appointed as the successor to former Commissioner Hwang Soo-kyung, who was dismissed shortly after statistics showed that the income of the bottom 20% of households (the first quintile) had plummeted by around 8% compared to the previous year in August 2018. After Kang's appointment, a reorganization of the household trend sample group and survey methods was carried out, focusing on narrowing the income distribution indicator, the 'quintile ratio,' from 5 times to 4 times. Through this, the proportion of low-income households earning less than 2 million won per month, which accounted for 32.9% (as of the first quarter of 2019), sharply decreased by 7.1 percentage points to 25.8%. On the other hand, the proportion of high-income earners making over 10 million won increased by 1.1 percentage points, making it appear as if polarization had improved.

Previously, the Board of Audit and Inspection investigated former Commissioners Hwang and Kang regarding allegations of statistical manipulation during the Moon Jae-in administration. It is known that the Board concluded that the three major statistics?income-led growth, real estate prices, and employment?were deliberately distorted due to intervention by the Blue House during the Moon administration.

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