Gyeongbuk Province Suspends Gyeongbuk Shinbo Chairman's Duties Two Weeks Before Term Ends... "Continued Personnel Manipulation"

Gyeongbuk Province, Audit on Former Chairman's Misconduct Allegations in November Last Year
Another Special Audit Recently on Successor Chairman Appointment

[Asia Economy Yeongnam Reporting Headquarters Reporter Park Dong-wook] Gyeongsangbuk-do announced on the 17th that it has notified Park Jin-woo, Chairman of the Gyeongbuk Credit Guarantee Foundation, who is under suspicion of 'abuse of personnel authority,' of suspension from duty as of the 15th until the results of a special audit are confirmed.

With only less than two weeks remaining in Chairman Park's term and a board meeting scheduled for the 18th to appoint his successor, it is expected that discord over the selection of the next chairman will continue for some time.

In November last year, Gyeongbuk Province conducted a complaint investigation audit regarding various allegations of irregularities related to the foundation's management by the chairman.

At that time, the province twice recommended withholding personnel appointments for affiliated executives and employees until the complaint investigation results were confirmed, but the foundation ignored this and promoted two level 2 employees to level 1 before the investigation results were even notified.

Moreover, despite the audit results being issued, the foundation did not officially receive the documents and carried out personnel transfers for 43 out of 77 employees before acknowledging the audit results, raising multiple suspicions according to Gyeongbuk Province.

Earlier, in November 2018, under the 'Management Innovation Promotion Plan for Gyeongbuk's Invested and Contributed Institutions during the 7th Elected Term,' the province notified a regulation revision requiring the appointment of institution heads through an executive recommendation committee. However, among 25 invested and contributed institutions in Gyeongbuk, only Gyeongbuk Credit Guarantee Foundation has not complied, the province reported.

Even during the current process to appoint the next chairman and non-standing auditor, the province repeatedly requested prior consultations and the formation of an executive recommendation committee via official documents, but these requests have not been accepted.

In this regard, a special audit regarding prior consultation on major board agenda items and the formation of the executive recommendation committee has been underway since the 13th.

A Gyeongbuk Province official stated, "Personnel irregularities have continued with basic information such as the status of chairman applicants not being shared with the relevant department or the appointing authority, the governor, so we had no choice but to suspend the chairman's duties 13 days before the term expiration."

Meanwhile, established in 2000, the Gyeongbuk Credit Guarantee Foundation is an invested institution of Gyeongsangbuk-do that guarantees debts of companies with weak collateral but growth potential. The foundation is scheduled to hold a board meeting on the 18th to appoint the next chairman.