Sports Toto Operation Stabilized... Agreement Reached on Adjustment Plan
Agreement on Management Improvement through Operating Expense Adjustment
The Ministry of Culture, Sports and Tourism announced on the 8th that it has reached an agreement on a mediation plan to stabilize the operation of Sports Toto through arbitration by the Anti-Corruption and Civil Rights Commission.
Since July 2020, Sports Toto Korea, which has been entrusted with operating the Sports Toto (Sports Promotion Lottery) business, has accumulated operating deficits due to exceeding personnel expenses compared to the approved budget. Claiming that stable operation of Sports Toto became difficult, it requested an adjustment of the operation plan from the Anti-Corruption and Civil Rights Commission in September last year. Accordingly, the Korea Sports Promotion Foundation and the Business Development Council were formed to discuss improvement measures.
Both sides found it difficult to narrow their differences regarding changes to the operation plan. The Ministry of Culture, Sports and Tourism and the Korea Sports Promotion Foundation were concerned that the formation of the National Sports Promotion Fund might be disrupted. They agreed on the need for management improvement and actively participated in the Commission’s mediation process. To ensure that changes to the Sports Toto operation plan comply with related laws such as the National Contract Act, they also received prior consulting from the Board of Audit and Inspection.
As a result, it was agreed to improve management by adjusting operating expenses within the minimum scope necessary to cover deficits without changing the entrusted operation ratio for the remaining contract period. The remaining budget from settlement items will be used for insufficient personnel expenses to secure professional manpower and improve workers’ treatment, and additional personnel expenses used will be managed through post-settlement to ensure they are used appropriately. This secures the stability of Sports Toto Korea’s operation and opens a way to cover deficits caused by future increases in personnel expenses.
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Choi Bo-geun, Director of the Sports Bureau at the Ministry of Culture, Sports and Tourism, said, "I am grateful to the Korea Sports Promotion Foundation and Sports Toto Korea for their mutual concessions and to the Anti-Corruption and Civil Rights Commission for their efforts in mediation," adding, "Through this mediation plan, I hope that Sports Toto, which accounts for more than 90% of sports finance, will be operated more stably and grow further."
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