[Exclusive] Jamboree Organizing Committee Faces Hundreds of Millions in Damages Lawsuit, Cannot Even Dissolve

On August 6, 2023, American scouts and leaders who declared an early withdrawal at the 2023 Saemangeum World Scout Jamboree campsite are moving their belongings.
[Image source=Yonhap News]

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The Jamboree Organizing Committee (Organizing Committee) has been sued for damages worth several hundred million won by a souvenir manufacturer. This is due to disruptions in sales caused by the early termination of the event. As disputes over airfare and audits by the Board of Audit and Inspection continued, the Organizing Committee decided to maintain the organization indefinitely without disbanding it, even though the event had ended.

According to a comprehensive report by Asia Economy on the 12th, the Organizing Committee was sued for damages worth around 400 million won last month by Company A, which was responsible for producing Jamboree souvenirs. Company A demanded compensation, claiming losses due to disruptions in souvenir sales caused by the early termination of the event. A representative from Company A said, “We produced inventory for souvenir sales, but due to the early termination, over 700 million won worth of stock remains,” and added, “While the Organizing Committee and the Ministry of Gender Equality and Family (MOGEF) are shifting responsibility, we are now forced to undergo rehabilitation procedures.”

The background to the Organizing Committee’s decision to end the event early was hasty management. Although the Organizing Committee and MOGEF recognized the lack of preparation before the event, they failed to properly address it, resulting in hundreds of heatstroke patients. The UK, the US, and Singapore withdrew their campsites, and the World Organization of the Scout Movement also recommended early termination of the event. The Organizing Committee initially declared it would continue the event until the end, but as Typhoon Khanun approached, they ultimately ended the event earlier than expected.

The Organizing Committee is avoiding responsibility for the damages suffered by Company A. A representative of the Organizing Committee said, “We will only know after entering the lawsuit process,” and added, “We plan to respond accordingly.” Regarding the overall corporate damage caused by the event’s disruption, they stated, “There is nothing to comment on.”

The Organizing Committee is also facing disputes over airfare. Due to the rapidly changing event schedule, the costs for participants who changed their flight tickets increased accordingly. The ‘Operation K’ program, which fully supports airfare and participation fees for some participants from over 150 countries, is a representative example. Forty-five hundred million won was invested in this program alone, but now cancellation fees and compensation amounts need to be adjusted.

An audit by the Board of Audit and Inspection is also underway. Since August last year, the Board has conducted audits of 16 institutions, including the Organizing Committee, MOGEF, and Jeonbuk Province, to identify responsibility for the disruption. On-site audits were conducted for about four months.

The Organizing Committee believes it must maintain essential response personnel as appearances before the Board and written inquiries are expected to continue for the time being. Earlier this year, the Organizing Committee reduced its staff from 122 employees to 20 and reorganized from six headquarters and 29 teams to three headquarters and five teams. Among them, civilian personnel numbered seven as of January, excluding the Secretary-General, with the rest being dispatched public officials. The disbandment date has not been set and is expected to operate indefinitely. A representative of the Organizing Committee explained, “We will proceed with disbandment after reviewing the remaining tasks, but the term has not yet been determined.”

The Organizing Committee’s operating budget will continue to be invested for the time being. According to this year’s main budget plan, a total expenditure budget of 596.48 million won was allocated for the Jamboree Organizing Committee Secretariat’s personnel expenses. Personnel expenses were spent on civilian employees and allowances for dispatched public officials. The total revenue and expenditure budget allocated to the Organizing Committee this year is 1.77058 billion won.

The Organizing Committee is also spending public funds on lawsuit responses. According to this year’s main budget plan, out of the 671.3 million won for ‘Organizing Committee Secretariat Operation Management,’ 170.13 million won includes lawyer consultations and lawsuit-related costs. The lawyer consultation fee budget was 24 million won, and lawsuit-related costs required a budget of 50 million won.

However, there are criticisms that the Organizing Committee is shifting the burden of cleaning up after the event’s disruption solely onto the remaining members of the Organizing Committee. The Ministry of Gender Equality and Family, the main government department in charge of the event, has effectively withdrawn from the cleanup, and the Organizing Committee is operating as a separate organization. Former Minister of MOGEF Kim Hyun-sook and former Vice Minister Lee Ki-soon, who were ex officio members of the event, have also left the ministry. A MOGEF official stated, “While it is true that MOGEF performs supervisory and guidance roles, the organizer of the Jamboree is the Organizing Committee,” drawing a clear line.

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