Two Executives of Local Public Enterprise Evaluation Institute under Ministry of the Interior and Safety Arrested for Embezzling 1.5 Billion KRW in Research Funds

Seoul Eastern District Prosecutors' Office.
Photo by Yonhap News

[Asia Economy Reporter Lee Jung-yoon] Two senior executives affiliated with the Local Public Enterprise Evaluation Institute under the Ministry of the Interior and Safety were arrested for embezzling wages amounting to hundreds of millions of won.

According to the legal community on the 6th, the Criminal Division 6 of the Seoul Eastern District Prosecutors' Office (Chief Prosecutor Lee Jung-seop) arrested Kim, a senior specialist and former head of the Management Evaluation Office at the Local Public Enterprise Evaluation Institute, and Jang, a former head of the Investment Analysis Center, on the 2nd on charges including fraud under the Act on the Aggravated Punishment of Specific Economic Crimes.

They are accused of embezzling approximately 1.5 billion won in wages over several years by falsely registering external personnel as project-participating researchers while carrying out research projects commissioned by local governments, government agencies, and public enterprises.

The prosecution had detected signs of their corruption in February and accelerated the investigation by conducting a search and seizure of the Evaluation Institute. It is reported that both have been dismissed.