[Exclusive] Veterans Affairs Corporation Also Faces Blacklist Controversy... Prosecution Considering Investigation

2017 Audit Office Chief's Report
Delivered to Incoming Chairman
Transferred Project Manager Files Lawsuit
Wonju District Prosecutor's Office Begins Investigation Review

[Asia Economy Reporter Kim Hyung-min] Regarding the Moon Jae-in administration blacklist allegations, it has been confirmed that there was also a personnel controversy due to a ‘blacklist’ within the Korea Veterans Welfare and Medical Service (VWS). The prosecution is reviewing an investigation, and a civil trial is underway in court.

According to a comprehensive report by Asia Economy on the 1st, the Chuncheon District Prosecutors’ Office Wonju Branch is reviewing whether to investigate the ‘VWS blacklist’ case, which was handed over from the Wonju Police Station. The case centers on the claim that around December 2017, Manager A, who worked in the VWS Audit Office, selected employees to create a ‘blacklist’ and that unfair personnel actions were taken based on this list. At that time, Manager A learned that Professor B from Seoul National University was to be appointed as the new chairman of the VWS on December 18, 2017, and created a blacklist document about employees in advance, sending it via email to Professor B five days before his appointment. Manager A conveyed a document to Professor B covering four categories (work understanding, personnel, current issues, and reflection of the inaugural speech). In particular, under the personnel section, it stated that “within one week of inauguration, the chief secretary and head of personnel must be transferred.”

After his appointment, Professor B carried out personnel actions according to this document. During this process, Mr. C, who was then the head of the Business Office, was transferred to Busan just five months after the appointment, and Mr. D, the head of the Audit Office, was also assigned as the head of the Incheon Hospital Preparation Team after five months. In Mr. D’s case, the fact that he was enrolled in graduate school, which should have been considered under internal transfer guidelines, was ignored when relocating his workplace. Additionally, the personnel action to suddenly replace the manager of Incheon Hospital with Mr. D at a critical time just one year before the hospital’s completion was considered difficult to justify.

As the controversy grew internally, the VWS Audit Office planned to hold an Audit Review Committee meeting on April 15, 2021, based on the investigation contents, but it was not held because Manager A submitted a notice stating “an investigation by law enforcement agencies has begun.” Afterward, the matter faded away. According to VWS personnel regulations, the chairman should have taken measures such as suspension or transfer of Manager A until the investigation by law enforcement agencies was completed, but no such action was taken, and Manager A was moved to the position of head of the Personnel Office.

Mr. C eventually filed a damages lawsuit against Manager A, which is being heard by the Seoul Central District Court Civil Division 33. He also filed a criminal complaint with the Wonju Police Station on charges including obstruction of business, but it was dismissed. After Mr. C raised objections, the case was transferred to the Chuncheon District Prosecutors’ Office Wonju Branch. The Wonju Branch is currently headed by Chief Prosecutor Park Ki-dong (50, Judicial Research and Training Institute class 30), who was dispatched to the Presidential Transition Committee. A legal insider said, “It was initially expected that the prosecution would observe the civil lawsuit and then decide the speed and direction of handling the case,” adding, “As the prosecution’s investigation into the blacklist allegations expands, this case is also expected to be affected.”

[Correction and Rebuttal Report] Regarding the VWS Blacklist Controversy

Regarding the articles titled “VWS Also Faces Blacklist Controversy” dated April 1 and “Police Investigating VWS Blacklist Received Meal Invitation” dated April 18, fact-checking revealed that the VWS Audit Office canceled the Audit Review Committee meeting in April 2021 after receiving notification of the start of an investigation from an external agency. On January 20, 2022, the Audit Office notified that no misconduct or illegal facts were found regarding the petition (possible internal regulation violations) and reports to the Anti-Corruption and Civil Rights Commission, and that the case was closed. It was also confirmed that Manager A is not subject to suspension under personnel regulations, and the reports that Manager A was a former aide to a certain Democratic Party lawmaker or that Mr. D’s graduate school enrollment was ignored in violation of internal transfer guidelines are not true, and this is hereby corrected.

Meanwhile, Manager A stated, “As a result of the police investigation, on December 31, 2021, a decision of non-prosecution due to insufficient evidence (no charges) was made regarding obstruction of business and other charges, and the police officers from Wonju Police Station dining with the VWS side last year is unrelated to the complaint case against Manager A.”

This report is pursuant to the mediation of the Press Arbitration Commission.