[2023 National Audit] Allegations of Statistical Manipulation by Moon Government... Statistics Korea Chief: "Weighted Values Arbitrarily Applied Despite Disagreements in Field Departments"

The ruling and opposition parties clashed fiercely over allegations of statistical manipulation during the Moon Jae-in administration at the National Assembly audit of Statistics Korea. The ruling party, based on the audit results announced by the Board of Audit and Inspection, defined the controversy over statistical manipulation as a national disorder incident and urged for fact-finding and prevention of recurrence. On the other hand, the opposition party countered that the Board of Audit and Inspection undermined the independence of Statistics Korea through a politically motivated audit.

At the Ministry of Economy and Finance's external agencies (Korea Customs Service, Public Procurement Service, Statistics Korea) audit held at the Daejeon Government Complex on the 12th, the ruling and opposition parties clashed over the allegations of statistical manipulation. Yoon Young-seok, a member of the People Power Party, claimed, "When it was expected that income distribution would worsen in 2018, the statistics were manipulated until the results showed an improvement in income distribution." He emphasized that although the department responsible for statistical design opposed due to concerns over weighting values, the manipulation was carried out by bypassing without the approval of Commissioner Hwang Soo-kyung.

Previously, Statistics Korea conducted simultaneous quarterly surveys on household income and expenditure until 2016, but in 2017-2018, it separated the income sector (quarterly statistics) and expenditure sector (annual statistics) for publication. The Board of Audit and Inspection recently pointed out in an interim audit result that when household income in the second quarter of 2017 showed a decrease, Statistics Korea manipulated the data by arbitrarily assigning a "working person weight" to the income of "households with employed persons," making it appear as if household income had increased.

From the same party, Song Eon-seok argued, "The fact that the 'Wave 7' method recommended by the Organisation for Economic Co-operation and Development (OECD) was only applied in 2021 in the Household Trends Survey statistics also indicates an intention of statistical manipulation by the Moon administration." Using Wave 7 reflects private transfer expenditures, and when applied, the 5th quintile ratio of equivalized disposable income in the fourth quarter of 2017 worsens compared to the previous year, more so than when Wave 6 was applied. Song criticized, "The Household Trends Survey delayed applying this to mislead that income distribution had improved."

[Image source=Yonhap News]

On the other hand, the Democratic Party countered that the Board of Audit and Inspection's audit on statistical manipulation was an attempt to tarnish the previous government. Han Byung-do, a member of the Democratic Party, said, "The decision to separate income and expenditure surveys in the Household Trends Survey was made during the Park Geun-hye administration," adding, "Suddenly changing the survey method and reducing the sample size made it impossible for the statistics to come out properly."

From the same party, Kang Jun-hyun stated, "Statistics provided by national institutions should be recognized for their expertise and independence, but the Board of Audit and Inspection showed a regressive behavior by labeling even normal policy processes as illegal," calling it "a typical politically motivated audit with impure intentions." Hong Young-pyo, also from the same party, criticized, "This is not statistical manipulation by Statistics Korea but audit manipulation by the Yoon Seok-yeol administration's political Board of Audit and Inspection and political prosecution."

The opposition also criticized Commissioner Lee Hyung-il of Statistics Korea for seemingly acknowledging the audit results in his official stance. Ko Yong-jin, a member of the Democratic Party, said, "Looking at the Statistics Korea bulletin board, employees are clamoring, saying 'It is regrettable that our agency cannot respond or take action,'" and sharply criticized, "The statement from Statistics Korea is a white flag surrender."

In response, Commissioner Lee of Statistics Korea said regarding the controversy over statistical manipulation, "There is a procedural defect in that detailed microdata was released externally without legal grounds."

Meanwhile, the Board of Audit and Inspection has requested a prosecution investigation on charges such as abuse of authority and obstruction of rights against 22 current and former public officials, including those from the Blue House and Statistics Korea during the Moon administration, for allegedly manipulating income and employment-related statistics.

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