[2024 National Audit] Bae Hyun-jin "Korea Tourism Organization Allocated 2.6 Billion KRW in Work to a Specific Company Over 7 Years"

Tourism Corporation Signs Two Annual Sole-Source Contracts per Company
Next Step, 90 Contracts Over 7 Years... 22 Last Year Alone
Rep. Bae: "Employee Who Worked at Corporation Was First Sole-Source Contract Manager"

On the 15th, allegations were raised that the Korea Tourism Organization had awarded approximately 2.6 billion KRW in direct contracts to a specific company over about seven years.

Bae Hyun-jin, a member of the National Assembly’s Culture, Sports and Tourism Committee from the People Power Party, pointed out during the National Assembly audit held that day that the Korea Tourism Organization had concentrated direct contracts with a particular company.

According to Representative Bae, the organization started by signing a direct contract with a company called Next Step just one month after its establishment, and from 2018 until recently, over seven years, it signed a total of 90 direct contracts worth approximately 2.58 billion KRW.

The organization signs about 1,500 direct contracts annually, and while the typical number of direct contracts a single company signs per year is around two, Next Step signed 18 direct contracts by September this year alone and 22 contracts last year.

[Image source=Yonhap News]

Representative Bae stated, "The issue is that the company’s CEO, Mr. Kim, worked at the organization for about four months starting in 2015, and he worked on the same team as Mr. Ham, who was in charge of the first direct contract." He added, "Mr. Ham was also responsible for the initial five direct contracts with Next Step and is either part of the direct contract department or personally received and forwarded estimates, which means he is connected to a total of 27 contracts."

Furthermore, Representative Bae claimed that although Next Step has signed numerous direct contracts exceeding 20 million KRW due to being a women-owned business, the current CEO, Ms. A, does not practically participate in management and is a 'figurehead president,' with the company effectively operated by her husband, Mr. Kim.

Representative Bae said, "If it is possible to secure direct contracts worth tens of billions of won just because of a brief connection with the Tourism Organization, it is truly lamentable for the small and micro businesses that are working legitimately." He demanded, "There is a need for a thorough investigation to determine whether there are any kickbacks or corrupt connections causing a chaotic situation within the Tourism Organization."

In response, Seo Young-chung, Acting President of the Korea Tourism Organization, acknowledged, "The suspicion is certainly worth raising," and promised to verify the matter and report back.