[2023 National Audit] Serious Moral Hazard in Gongyoung Home Shopping... Lee Young "Will Conduct Large-Scale Audit"

Lee Young, Minister of SMEs and Startups.

Lee Young, Minister of the Ministry of SMEs and Startups, announced on the 12th that a large-scale audit will be conducted on Public Home Shopping.

Minister Lee made this statement during the Ministry of SMEs and Startups' parliamentary audit held at the National Assembly's Industry, Trade, Energy, SMEs and Startups Committee, in response to Kwon Myung-ho of the People Power Party pointing out that "moral hazard is rampant in Public Home Shopping."

According to materials submitted by Public Home Shopping to Representative Kwon, among about 20 executives and employees disciplined in December 2018 for "unfair stock trading related to improper equity investment," 10 were promoted. Four were promoted in June 2020, one and a half years after the disciplinary action, and three were promoted in December 2021. In March of this year, three more were promoted to department head or manager positions.

Representative Kwon criticized, "It is problematic that executives and employees who were disciplined and pointed out for illegal stock trading acts in the last audit are still occupying key positions," adding, "I pointed out that they continue to be promoted, and this year, three of those employees were promoted again." He continued, "They say promotions were made due to internal regulations, but if internal regulations do not meet the public's expectations, they should be changed," adding, "Only employees who work diligently are suffering."

It also became controversial that Cho Sung-ho, CEO of Public Home Shopping, mobilized about 40 employees for his father's funeral and paid a total of 5.1 million won in travel expenses using company funds. Regarding this, Minister Lee said, "All the paid travel expenses have been fully recovered," and added, "A large-scale audit of Public Home Shopping will be conducted, and responsibility will be held accordingly."

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