Controversy Over 'Albakgi Insas' at Korea Rural Community Corporation, Following Board of Audit Inspection, Now Facing Tax Investigation by Busan Regional Tax Office

Lee Byung-ho, President of Korea Rural Community Corporation

[Asia Economy Sejong=Reporter Kim Hyewon] The Korea Rural Community Corporation, which was embroiled in controversy over 'preemptive appointments' during the Moon Jae-in administration, is simultaneously undergoing a targeted audit by the Board of Audit and Inspection and a tax investigation by the National Tax Service.

According to government sources on the 5th, the Korea Rural Community Corporation has submitted the requested documents to the Board of Audit and Inspection and is currently undergoing an irregular audit by the Public Institution Audit Bureau of the Board. Three auditors from the Board were dispatched to the Korea Rural Community Corporation on the 31st of last month and will remain on-site until the 7th to conduct the audit.

The Korea Rural Community Corporation, as an agency under the Ministry of Agriculture, Food and Rural Affairs, underwent a regular audit by the Board of Audit and Inspection once every five years in 2020. Additionally, in March of this year, it underwent a public interest audit regarding the execution of donations. It is now facing another audit by the Board of Audit and Inspection just over five months later.

The Korea Rural Community Corporation is visibly tense after receiving a request for a specific audit from the Board without any special reason. This is because President Lee Byung-ho, who moved from the Korea Agro-Fisheries & Food Trade Corporation to the Korea Rural Community Corporation at the end of the Moon administration, was at the center of the 'preemptive appointment' controversy. President Lee took office as the head of the Korea Rural Community Corporation in March this year and is currently in the first year of his three-year term.

Currently, the Board of Audit and Inspection is conducting separate audits focusing on public institutions where heads were appointed during the Moon administration, including the Korea Racing Authority and Incheon International Airport Corporation, in addition to the Korea Rural Community Corporation.

Previously, at the Anti-Corruption and Civil Rights Commission, which was also subject to an audit by the Board, Vice Chairman Lee Jeong-hee resigned after being unable to withstand the excessive audit pressure. There were also open rumors that the audit of the Commission was a move to pressure former Chairman Jeon Hyun-hee, a pro-Moon faction figure, regarding her position.

Furthermore, the Korea Rural Community Corporation is scheduled to undergo a regular tax investigation by the Busan Regional Tax Office around the end of September. Although the Korea Rural Community Corporation is located in Naju, Jeollanam-do, and falls under the jurisdiction of the Gwangju Regional Tax Office, it is unusually being audited by the Busan Regional Tax Office. The National Tax Service explained this as a cross-investigation measure, but the Korea Rural Community Corporation remains on high alert.