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SLUSH FUND SCAM: Korean Officials Used Communist Tactics To Steal Millions From Taxpayers

EconomySLUSH FUND SCAM: Korean Officials Used Communist Tactics To Steal Millions From Taxpayers
Courtesy of Uiseong County
Courtesy of Uiseong County

Uiseong County in North Gyeongsang Province is under scrutiny for allegedly providing multi-million-dollar benefits to specific individuals by purchasing real estate without proper procedures or reviews.

According to county officials, on Monday, Uiseong County and its council allocated and approved a 22 billion KRW (16.5 million USD) budget for the Automobile Tuning Complex Project, an initiative by the Ministry of Land, Infrastructure and Transport. They acquired a 79,338-square-meter site (approximately 19.6 acres) in Cheongro-ri, Geumseong-myeon, Uiseong.

However, it has come to light that despite the project’s rejection, the county purchased a specific plot for 14.8 billion KRW (11.1 million USD) in June without modifying the project plan or seeking additional reviews and approvals.

Local government laws mandate council approval for changes in property management, disposal, or budget allocation when a project fails and budget use changes.

Courtesy of Uiseong County
Courtesy of Uiseong County

Uiseong County, however, bypassed these procedures and has yet to provide a clear explanation for the land acquisition.

Notably, the land in question was purchased by a local journalist for 8.8 billion KRW (6.6 million USD) in 2023.

The county’s subsequent purchase of 14.8 billion KRW (11.1 million USD) has raised eyebrows among residents, who suspect preferential treatment for certain individuals.

The acquired property includes 70,400 square meters (17.4 acres) of forest land and 8,900 square meters (2.2 acres) of developed land, featuring a 20-year-old Korean sauna building and storage facilities.

One 65-year-old resident said it was questionable that rural land could increase in value by 6 billion KRW (4.5 million USD) in only two years and argued that an audit should have been conducted, since taxpayer funds were used.

A Uiseong County Council representative confirmed that no project plan changes, supplementary budgets, or approvals were processed after the project’s rejection.

A county official defended the purchase and said the land had been acquired based on a professional appraisal, adding that the county could not disclose appraisal details or the appraisal firm. The official also said relevant departments were discussing future uses of the land and denied any preferential treatment.

Meanwhile, Gimcheon City in Gyeongbuk has been selected to proceed with the Automobile Tuning Complex Project.

Courtesy of News1
Courtesy of News1

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