[2020 National Audit] "Insulting" "Lawmakers Also Responsible for Perjury"... Supervised Ministers and Agency Heads Also 'Furious'

Jong-wook Cho, Chairman of the Korea Fair Trade Commission. (Photo by Yonhap News)

[Asia Economy Reporter Moon Chaeseok]

"I find it very insulting to say that my experience as an outside director contributed to Hanwha being cleared of charges by the Fair Trade Commission." (Cho Sung-wook, Chairman of the Fair Trade Commission)

"The remark that Korea Hydro & Nuclear Power (KHNP), which is 'peeking' at solar and wind power due to the nuclear phase-out policy, should change its corporate name to 'Hansutae' is insulting. Please note that nuclear power accounts for 97% of KHNP's portfolio." (Jung Jae-hoon, President of KHNP)

"Regarding perjury, the lawmaker should take responsibility later. I have never committed perjury." (President Jung)

At this year's National Assembly audit, it was notable that heads of audited institutions actively protested lawmakers' inquiries when necessary.

The term 'insulting' usually arises when opposition lawmakers provoke and ruling party lawmakers respond, but this year was different.

Heads of Audited Institutions Also Responded with "Insulting"

Yoon Ho-jung, Chairman of the National Assembly Legislation and Judiciary Committee. (Photo by Yonhap News)

Heads of government and public institutions under audit actively defended themselves against allegations raised during sensitive policy inquiries. At least on the surface, this was interpreted as a willingness to protect personal and organizational honor.

On the 8th, at the Political Affairs Committee audit, Chairman Cho rebutted Democratic Party lawmaker Park Yong-jin’s remarks linking his past experience as an outside director at Hanwha with the Fair Trade Commission’s recent decision to clear Hanwha of allegations of preferential treatment, calling it "very insulting."

On the 15th, at the Industry, Trade, Small and Medium Enterprises Committee (ITSMEC) audit, People Power Party lawmaker Eom Tae-young pressured KHNP to change the 'Won' (nuclear) character in its name to 'Tae' (solar), implying a shift in focus. President Jung responded by calling it "an insulting remark."

Park Sang-byeong, a visiting professor at Inha University Graduate School of Policy and a political commentator, said, "I thought this year’s audit would be a scolding session, but it turned into an insulting audit. If scolding symbolized previous National Assemblies, now a rare audit atmosphere has emerged where the ruling party, opposition, and audited institutions all view each other from an insulting perspective."

The term 'insulting' typically arises when opposition lawmakers ask sensitive questions to heads of audited institutions, witnesses, or reference persons, and ruling party lawmakers respond on their behalf.

This year, on the 7th, at the Science, Technology, Information and Broadcasting Communications Committee (STIBC) audit, Democratic Party lawmaker Yoon Young-chan called People Power Party lawmaker Park Dae-chul "insulting" for implying that Naver was bribing lawmakers.

Also, on the 19th, at the Legislation and Judiciary Committee audit, People Power Party lawmaker Yoon Han-hong questioned the 'Chu Mi-ae faction' for allegedly conducting a sloppy investigation into the Optimus Asset Management fraud case. Democratic Party committee chairman Yoon Ho-jung asked him to refrain from "personally insulting remarks." Yoon Han-hong rebutted again, causing a commotion in the audit hall.

The Optimus Asset Management redemption suspension scandal involved raising 1.2 trillion won from 2017 to June this year by investing in public institution accounts receivable, then using the funds for acquiring insolvent companies and rolling over funds, causing damage to about 2,900 investors.

Professor Shin Yul of Myongji University’s Department of Political Science and Diplomacy explained, "Generally, the term 'insulting' is used more often when heads of audited institutions or ministers respond insincerely to lawmakers’ questions."

Professor Shin added, "Heads of audited institutions saying 'insulting' indicates problems with lawmakers’ expertise. The opposition is weak and fails to attract public attention, so government officials feel empowered to push back against the opposition."

Professor Park said, "In the past, even if lawmakers made disparaging remarks about their institutions, officials would just endure it, considering the government and political situation. Now, politics is polarized, so they respond accordingly. Judging and acting that 'being treated like the opposing party is insulting' is a fragment of a polarized society."

Loud Voices and Finger-Pointing in Political Disputes

Jaehoon Jung, President of Korea Hydro & Nuclear Power. (Photo by Yonhap News)

Even the relatively rational policy review audits of ITSMEC and STIBC did not escape the old-fashioned audit framework when it came to the political issue of the 'Wolseong Unit 1' nuclear reactor.

On the 20th, the Board of Audit and Inspection announced that KHNP’s 2018 decision to prematurely shut down Wolseong Unit 1 had an 'unreasonably low economic evaluation.' However, it withheld judgment on the appropriateness of the early shutdown decision.

The nuclear phase-out policy was a key campaign pledge of President Moon Jae-in and a core national agenda since the 'Nuclear-Free Nation Declaration' on June 19, 2017, as part of the energy transition policy.

At the ITSMEC audit on the 22nd, held shortly after the audit announcement, a dispute broke out when ruling party lawmaker Song Gap-seok’s procedural remarks were interrupted by People Power Party lawmaker Kim Jeong-jae.

Kim questioned whether there was 'abuse of power by the Blue House and the Ministry of Trade, Industry and Energy' regarding the early shutdown decision of Wolseong Unit 1. Song responded, "Such inquiries are very regrettable."

The initial cause of the dispute was opposition lawmakers’ questions about external pressure from the Blue House and the Ministry of Trade, Industry and Energy, with loud voices and finger-pointing following as a result. Ultimately, the ITSMEC lawmakers themselves downgraded the reputation of the 'policy review audit' to an 'old-fashioned audit.'

This phenomenon continued at the STIBC audit on the 23rd, again centered on 'Wolseong Unit 1.'

People Power Party lawmaker Hwang Bo-seung-hee focused her questions on President Jung’s opinion regarding Minister of Trade, Industry and Energy Sung Yun-mo’s statement at the ITSMEC audit that the economic evaluation was not manipulated. President Jung replied, "The audit report does not use the term 'manipulation' anywhere."

After the microphone was turned off, as President Jung was about to continue his answer, Lawmaker Hwang said, "The economic evaluation amount for Wolseong Unit 1 dropped from about 300 billion won to 170 billion won, then to 16.7 billion won, all within a few days," adding, "President Jung also committed perjury."

President Jung responded, "Regarding perjury, you (Lawmaker Hwang) should take responsibility later. I have never committed perjury."

Following protests from lawmakers, President Jung expressed regret, but when STIBC Chairman Lee Won-wook said, "Express regret is not enough; apologize," President Jung said, "I am sorry."

When Chairman Lee asked him to stand and bow to both ruling and opposition lawmakers, President Jung had no choice but to bow deeply at a 90-degree angle.

"Increasingly a Political Dispute Audit, Not a Policy Audit"

The view of Osong Station located in Osong-eup, Heungdeok-gu, Cheongju-si, Chungcheongbuk-do. Civil servants must frequently respond to attendance requests from National Assembly aides even when there is no national audit. At Osong Station, it is easy to see civil servants traveling to and from Seoul on weekday mornings and afternoons. (Image source=Yonhap News)

Political experts evaluate that this phenomenon results from lawmakers and their aides perceiving the National Assembly audit not as a 'fierce policy review stage' but as an 'opportunity to raise political dispute issues,' and heads of audited institutions responding accordingly.

The audit often resembles a wrestling match where the opposition attacks and the ruling party defends the government by lying low. In a ruling party minority situation, the opposition is more desperate to land a 'knockout blow,' and raising suspicions is the fastest way.

Some perceptive heads of audited institutions keep detailed records of first-term lawmakers’ distribution, their pre-election careers, and aides who frequently summon them for government-related inquiries outside the audit period.

Experts say the audit season is like a 'one-year harvest' for National Assembly aides, similar to accountants rushing to complete audit reports before the annual shareholders’ meeting, a 'year-end season.'

Professor Park said, "The executive branch thinks 'just get through this period,' while aides must 'harvest the entire year' during this time, leading to more clashes and more political dispute audits. Especially the opposition will demand much more data from civil servants because if they fail to uncover issues that interest the public, they will be fully responsible for a 'bland audit' compared to the ruling party."

He predicted, "For example, aides who fail to raise lifestyle issues like humidifier disinfectants will find it hard to rise, and civil servants will defend the government position more strongly."

There is also an opinion that the atmosphere where government and public institution heads 'speak their minds' is a unique feature of the Moon Jae-in administration.

Professor Kim Hyung-jun of Myongji University’s Department of Political Science said, "In this administration, civil servants showing that they 'never take action' regardless of lawmakers’ inquiries is seen as a good image by the Blue House," criticizing it as "flattering the powers that be."

He pointed out, "Lawmakers’ questions at the audit represent the people’s questions, not the lawmakers themselves. How can heads of audited institutions use the word 'insulting'? It is a unique phenomenon emerging from this administration that lawmakers, representatives of the people, are called insulting."