"88% of Rural Tourism Budget Went to Council Vehicle Costs"... Jeonbuk Province Slammed for Lax Oversight

KRW 36.08 million of KRW 42 million in outsourced project funds spent on vehicle-related expenses
Share raised from 3% to 5% amid controversy over whether budget spending was appropriate
Assemblyman Kim Daejung: "Thorough investigation and recovery of improperly spent funds"

Criticism is mounting over the propriety of budget spending after funds allocated by Jeonbuk Special Self-Governing Province to boost the tourism competitiveness of rural villages were found to have been used largely to purchase and maintain vehicles for a private-sector council rather than to promote rural tourism. It also emerged that the province increased the share of project funds paid to the council starting this year without clearly verifying whether vehicle-related expenditures were appropriate, raising concerns about inadequate oversight.

Kim Dae-jung, member of the Jeonbuk Special Self-Governing Provincial Council.

Kim Daejung, a member of the Jeonbuk Special Self-Governing Province Council (Iksan 5), disclosed details of budget spending under the project to enhance rural tourism competitiveness during an administrative audit of the Agriculture, Life Industry and Livestock Bureau on November 13, calling on the province to conduct a thorough investigation and recover funds spent improperly.

The project to enhance rural tourism competitiveness began in 2023 to develop tourism content that highlights the distinctive features of rural villages and expand experiential facilities and income-generating facilities. Under the program, each village received KRW 200 million, with a total of KRW 2.4 billion allocated to 12 villages through 2025. Of this amount, KRW 72 million, or 3% of the total project budget, was paid as outsourced project funds to the Jeonbuk Council of Rural Experience and Recreation Villages, which was responsible for project operations, consulting, and education.

However, Assemblyman Kim pointed out that a substantial portion of the actual spending was unrelated to the project’s purpose.

Of the KRW 30 million in outsourced project funds paid to the council in 2024, 88.8%, or KRW 26.63 million, was spent on vehicle down payments and installment payments, registration fees, insurance premiums, and rental costs. In 2025, KRW 9.45 million, or 78.7% of the KRW 12 million in total outsourced project funds, was spent on vehicle installment payments and insurance premiums.

By contrast, the budget spent on consulting, education, and monitoring directly related to strengthening rural tourism competitiveness totaled just KRW 3.3 million in 2024 and KRW 2.5 million in 2025.

In effect, KRW 36.08 million, or about 86% of the KRW 42 million in outsourced project funds paid over the two years, went toward vehicle-related expenses.

“The budget was provided to boost rural tourism competitiveness, but it was concentrated on buying and maintaining the council’s vehicles rather than strengthening the capabilities of the villages,” Assemblyman Kim said. “It is hard not to ask whether this is a project to promote rural tourism or one to subsidize a particular council’s vehicle purchase.”

Concerns have also been raised about the province’s follow-up management, in addition to the propriety of the spending.

The project guidelines stipulate that outsourced project funds are to be used to support project operations, consulting, education, and monitoring. It remains necessary to determine whether vehicle purchases or installment payments fall within these purposes and whether the related expenditures received prior approval and were reviewed for appropriateness.

It also emerged that Jeonbuk Special Self-Governing Province increased the share of outsourced project funds paid to the council from 3% to 5% starting this year without clearly verifying whether the existing funds had been used appropriately.

“The province should first determine whether the existing funds were used for their intended purpose, yet it instead expanded the support rate,” Assemblyman Kim said. “It has invited suspicion that it prioritized support for the council over verifying project outcomes and the propriety of budget spending.”

He added, “Taxpayers’ money is not meant to increase the council’s assets; it is a budget to strengthen the competitiveness of rural villages,” and called for a comprehensive investigation into the vehicle purchase approval process, ownership, and actual use.

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