Board of Audit and Inspection: "Former Seoul Official Used Company Card for Gold Necklace"...Reported to Prosecution

Personal Use of Corporate Card 51 Times
Hotel Stays, Laptop for Child, and Golf Entertainment Included

An audit by the Board of Audit and Inspection has revealed that a former director of the Seoul Metropolitan Government received over 29 million won in cash and entertainment, including expensive clothing and a gold necklace purchased with a corporate card from a company under contract with the city. The investigation found that the individual also received hotel stays, a laptop for his child, as well as golf and meal hospitality. The Board of Audit and Inspection reported both the former officer and the company representative to the prosecution on charges of bribery and accepting illegal gratuities.

On September 21, the Board of Audit and Inspection released the results of its audit titled "Regional Indigenous Corruption and Public Service Inspection I." According to the agency, former director A of the Seoul Metropolitan Government received a total of approximately 29.06 million won in cash and benefits from company representative B, whose company had ongoing contractual relationships with the city, in exchange for providing various conveniences during the contract signing and execution processes.

From April to December 2025, A oversaw and managed five contracts, including service and goods purchase contracts, awarded to B's company, totaling approximately 1.69 billion won.

The largest single factor identified in the audit was the improper use of the firm's corporate card. In May 2025, just before signing a goods purchase contract worth 1.04 billion won with the company, A was handed the corporate card by B. Over 51 transactions until May this year, A spent a total of 21.03 million won on luxury clothing and a gold necklace, among other items. When giving the card, B reportedly told A, "Don't worry. The limit is 2 million won per month. There is nothing to be concerned about."

Hotel accommodation was also provided. In January of last year, A received a night's stay at a hotel in Incheon worth 880,000 won and then, three months later, signed a service contract with the company worth 240 million won. In July of the same year, A received hotel accommodation in Seoul for two nights amounting to 2.68 million won while the company was supplying software to the city.

In January of this year, A received a laptop worth 3.78 million won as a gift for his child. Between May and December of last year, A also received four meal invitations and one golf outing, receiving a total of 680,000 won in entertainment.

During the audit process, A stated that B had likely provided the benefits "in hopes of not suffering any disadvantages in regard to contracts." It was confirmed that after winning the contract in June of last year, B sent a Telegram message to A saying, "Business has been difficult lately, so this feels like much-needed relief. Thank you for giving us this opportunity."

The Board of Audit and Inspection determined that A received money and benefits from a company related to his duties in exchange for facilitating the contract signing and execution processes. Consequently, both A and B were reported to the prosecution on charges of bribery and giving bribes under the Criminal Act.

The Seoul Metropolitan Government was notified to impose sanctions on the involved company, including restricting their bidding eligibility under the Local Contracts Act. The law stipulates that if a company provides a public official with benefits worth at least 10 million won but less than 100 million won during the contract signing or execution phase, their eligibility to participate in bids must be suspended for six months.

A resigned in June of this year, making disciplinary actions impossible. The Board of Audit and Inspection has informed Seoul Metropolitan Government of these violations so the information can be used in future HR reviews or awards considerations, and has sent the relevant details to the Ministry of Personnel Management to factor into the management of prospective public officials.

This case was uncovered during the Board of Audit and Inspection's "Regional Indigenous Corruption and Public Service Inspection I," which was conducted in June and July to examine possible collusion between public officials and stakeholders in local government business, contracts, and permitting processes. Determining that a swift investigation was necessary, the Board gave this case priority, handling it before the announcement of the full inspection results.

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