[Asia Economy Yeongnam Reporting Headquarters Reporter Lee Seryeong] Gyeongsangnam-do has taken action against Gyeongnam FC, the Gyeongnam Provincial Citizens' Football Club, which has been embroiled in controversies such as sexual harassment and power abuse.
On the 30th, Gyeongsangnam-do announced that its special audit revealed nine cases of impropriety in the execution of subsidies for Gyeongnam FC.
According to the province on that day, Gyeongnam FC violated subsidy grant conditions by replacing 1.189 billion KRW out of 2.3 billion KRW borrowed from commercial banks before the province's subsidy grant decision notification with a self-funded account, and using 500 million KRW of that amount to repay loans.
Despite 23 employees taking 225 unauthorized business trips without submitting travel requests or obtaining approval for travel orders, travel expenses amounting to 7.59 million KRW were paid. The club also arbitrarily changed internal regulations to use company vehicles for private purposes 361 times and improperly spent about 4.1 million KRW on fuel and other expenses.
Company vehicles were operated without dispatch requests or approvals, and vehicle operation logs were not maintained, yet toll fees and fuel costs amounting to approximately 19 million KRW were paid.
Although there were no attendance records through facial recognition devices to verify actual overtime work, overtime allowances totaling about 28 million KRW were paid to 24 employees.
Some employees deliberately attached canceled KTX receipts to claim train fares as travel expenses, provided accommodations to acquaintances using operating funds during away games for players and staff, while staying in separate lodgings themselves and receiving lodging fees.
Other issues uncovered included failure to recover advance payments made to foreign players, improper handling of overseas training camp contracts, neglect after introducing an electronic approval system, split private contracts for vehicle rental services, and failure to follow inspection procedures for medical supplies and other goods.
Chaseokho, Director of the Culture, Tourism and Sports Bureau of Gyeongnam Province, is announcing a high-intensity innovation plan to normalize Gyeongnam FC. [Photo by Gyeongnam Provincial Government]
Gyeongsangnam-do has unveiled a strong reform plan to normalize Gyeongnam FC.
▲ Complete replacement of the club's management, including the CEO and board members ▲ Organizational restructuring including staff reduction ▲ Addition of accounting experts and conducting internal audits once a year ▲ Reduction of provincial financial support and securing self-sustainability by encouraging corporate sponsorship ▲ Introduction of goal management system for management and staff ▲ Implementation of a one-strike-out policy for major misconduct.
A provincial official stated, “We aim to achieve 50% financial independence within the 8th elected term, reducing provincial funding to 65% in 2024, 60% in 2025, and 50% in 2026,” adding, “If self-sustainability is not achieved within the term, disbandment of the club will also be considered.”
The province has set a goal to advance to the first division league within the 8th elected term to encourage efforts, but if promotion fails, it plans to gather public opinion and decide on either disbanding the club or relegating it to the K-3 League.
Regarding various misconducts such as bribery, entertainment, sexual violence, and drunk driving reported through the media, a one-strike-out policy will be introduced, and disciplinary and recovery actions will be strictly enforced according to regulations.
A provincial official said, “Based on the audit results, suspected cases have been referred for investigation, improperly executed subsidies have been recovered, and related public officials have been disciplined,” adding, “We will do our best to ensure that through strong reforms, Gyeongnam FC can truly become a healthy provincial professional club that citizens support and applaud.”
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