Multi-million Won Bribery Investigation of Former and Current Executives at Korea Rail Network Authority... "Need to Innovate 'Cheolpia'" [2024 National Audit]

Korea Rail Network Authority Multi-Billion Won Bribery Case
Received Rolex Watches Worth 70 Million Won, Mercedes-Benz Worth 180 Million Won
Overall Integrity Rating Grade 4... "Virtually Last Place"

Lee So-young, a member of the Democratic Party of Korea, is questioning at the Land, Infrastructure and Transport Committee's audit held at the National Assembly on the 17th. Photo by Kim Hyun-min kimhyun81@

On the 11th, Lee So-young, a member of the Democratic Party of Korea, criticized at the National Assembly Land, Infrastructure and Transport Committee’s audit held at the Korea Railroad Corporation (KORAIL) headquarters, stating, "There is even a term 'Cheolpia,' a combination of the Railroad Corporation and mafia, due to repeated bribery issues, but the corporation has been consistent with lukewarm measures."

Lee said, "Mr. A, who was indicted while in custody, exerted pressure by illegally subcontracting to successful electrical construction bidders and promised to receive a watch worth about 70 million won and a Mercedes-Benz vehicle," adding, "The prosecution alleges that the gift expenses for Director A were also paid by the companies."

Mr. A, the former head of the technical headquarters at the Railroad Corporation, has been on trial for receiving bribes worth several hundred million won from companies awarded train track construction contracts over about four years since 2018. According to the prosecution, Mr. A received Rolex watches, Mercedes-Benz vehicles, and other benefits in exchange for facilitating construction and also ordered illegal subcontracting to specific companies for the overhead line construction. Although Mr. A partially denies the charges in court, the prosecution is reportedly conducting additional investigations into current executives of the corporation.

Lee stated, "There is said to be a list of individuals who received gifts from Director A. The Daejeon District Prosecutors’ Office is investigating another executive, including a current executive," raising suspicions about the gift list, and questioned Lee Sung-hae, chairman of the Railroad Corporation, about whether the gift list had been confirmed and about new investigation targets.

Chairman Lee replied, "I have heard about the (gift list) but have not confirmed the list. I am also unaware of any additional investigation targets."

Criticism was also raised regarding the Railroad Corporation’s special measures to eradicate misconduct. Lee said, "After the prosecution announced the investigation results on misconduct, the corporation hurriedly announced special measures, but they are not much different from the basic measures," adding, "The plans to enhance transparency and fairness and to implement strong personnel actions against corrupt actors are obvious."

Lee added, "The Railroad Corporation has received a grade 4 in comprehensive integrity for four consecutive years, and since no institution received grade 5, it is effectively the lowest rank," emphasizing, "The Cheolpia issue is not only about integrity but also directly related to public safety. Please consider and submit bold innovative measures that can completely dispel public suspicion."

Lee Sung-hae, chairman of the Railroad Corporation, said, "Based on the opinions of the lawmakers, we will internally review and submit measures to improve integrity."

Meanwhile, the Daejeon District Prosecutors’ Office is conducting investigations into other former and current executives of the Railroad Corporation following the indictment and detention of former executive Mr. A on bribery charges.