[Exclusive] Hundreds of Thousands of Won Worth of Office Supplies in Kimchi Factory Warehouse?…Only 200 Won Left in Donation Account [Leaking Donations] ①

Full Survey of 144 Former National Assembly Members
Ex-Member Bae Jin-kyo Spent About 2 Million KRW
Company States "Transaction Statement Was Incorrectly Prepared"
Issue with National Assembly Members' Practice of Purchasing Stationery on Credit

Editor's NoteThe reason for abolishing district parties in the past was due to illegal political funds. Recently, the two major parties have been pushing for the revival of district parties. A prerequisite for the revival of district parties is the transparent use of political funds. What is the actual situation? Asia Economy requested information disclosure from the National Election Commission and regional election commissions and secured six months' worth of accounting reports submitted before the expiration of the terms of 144 members of the 21st National Assembly, who have now become 'former members of the National Assembly.' Based on this data, we prioritized verification items by examining the appropriateness of expenditure purposes and usage locations. We confirmed with the parties involved and the election commission, and also conducted on-site reporting. We also examined whether the election commission properly verified the accounting reports submitted by them. Based on this, we focus on verifying and reporting on the use of sponsorship funds by members of the National Assembly at the end of their terms. ① Spending millions of won on office supplies at a kimchi factory logistics warehouse

"It's been three years since it was used as a kimchi factory logistics warehouse?"

A quiet residential area in Mansu-dong, Namdong-gu, Incheon. This is the address of Company D, which reported to the National Election Commission that former 21st National Assembly member Bae Jin-gyo spent about 2 million won on office supplies in June. The kimchi factory owner, Mr. Kim, who currently rents and uses this warehouse, said he did not know the reason for this. In fact, when a reporter visited here on the 11th, a truck loaded with cabbages to the height of the first floor of the building was parked in front of the warehouse. Inside the warehouse, ingredients needed to make kimchi were stacked in sacks.


On the 11th, the location of Company D in Mansu-dong, Namdong-gu, Incheon City was being used as a logistics warehouse for a kimchi factory. (Photo by Lee Hyun-joo)

On the 11th, the location of Company D in Mansu-dong, Namdong-gu, Incheon City was being used as a logistics warehouse for a kimchi factory. (Photo by Lee Hyun-joo)

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According to the income and expenditure report submitted by former member Bae to the National Election Commission upon the expiration of his term in the 21st National Assembly, he made the office supplies purchase on June 10, just over ten days after his term ended. The amount was 2,237,620 won. After making this payment, the remaining balance in Bae's sponsorship fund account was 200 won. Prior to the office supplies expenditure, Bae also disposed of a computer and a heater for 600,000 won in a lump sum through Company D. How was it possible to make an office supplies purchase at a kimchi factory logistics warehouse?


Company D claimed that although they moved their office several years ago, they did not update the address when preparing the transaction statements submitted to the member's office. The representative of Company D said, "We started the business in August 2017, and it seems we continued to use the address from when we first started on the transaction statements," adding, "We acknowledge the mistake on the documents." He further said, "We mainly supply copier rentals, A4 paper, toner, etc.," and added, "Since we do not go to the office regularly, we thought the office address was not important." He also questioned whether only the business registration number and receipt amount needed to match.


In a situation where only the submission of the accounting report remains after the term expiration, did former member Bae actually purchase office supplies? If so, where were they used? Regarding this, a representative from Bae's side explained, "This year, the cost of office supplies used on credit was paid off all at once." However, neither side provided related documents. They said they would "look for them," but no further contact was made.


The address on the accounting report was a kimchi factory logistics warehouse, with trucks loaded with napa cabbage parked in front of the building, and ingredients used for making kimchi stored inside. (Photo by Lee Hyun-joo)

The address on the accounting report was a kimchi factory logistics warehouse, with trucks loaded with napa cabbage parked in front of the building, and ingredients used for making kimchi stored inside. (Photo by Lee Hyun-joo)

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There is criticism that transaction statements, which can be prepared manually rather than electronically, require careful handling when written. When allegations of Saemaeul Geumgo loans involving former Democratic Party member Yang Moon-seok surfaced in the past, most of the transaction statements submitted by his children were found to be false, causing controversy. In particular, even if the business registration number is valid and the receipt amount matches, if an amount nearly equal to the remaining political fund balance at the end of the term is spent all at once, it can cause misunderstandings.


The fact that small amounts are frequently purchased and stationery transactions are considered a credit practice is also problematic. Former member Yoo Jung-joo also spent 1,333,200 won on June 9 for unpaid office supplies. Government accounting and others adopt cash basis accounting to ensure transparency, so income and expenditure must be processed and recorded each time an expense occurs. Bae's accounting manager explained, "There was no intention to use up the remaining sponsorship funds," and added, "The amount increased because unpaid amounts were settled all at once."

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