Confessions of Accountants' Conscience: "Financial Reports Are Number Games" [Leaking Donations]⑬

"Making Sponsorship Funds Zero Is a Skill"
"No Other Way Than Insider Tips"

Editor's NoteIn the past, the reason for abolishing the Jigu Party was due to illegal political funds. Recently, the two major parties have been pushing for the revival of the Jigu Party. The prerequisite for the revival of the Jigu Party is transparent use of political funds. What is the actual situation? Asia Economy requested information disclosure from the Central Election Commission and regional election commissions and secured six months' worth of accounting reports before the expiration of the terms of 144 members of the 21st National Assembly. These individuals are now former lawmakers. Based on the secured data, we prioritized verification items by examining the appropriateness of expenditure purposes and usage locations. We confirmed with the parties involved and the election commissions, and also conducted on-site reporting. We also uncovered the reality that election commissions do not properly verify accounting reports. We focus on verifying and reporting on the use of political funds by lawmakers near the end of their terms. ① Spending millions of won on office supplies at a kimchi factory logistics warehouse ② Used for meals at Gangnam wine bars, hotels, and famous restaurants... 'Meetings = Gourmet tours?' ③ Retirement pay is illegal... 'Retirement consolation money' is legal ④ Large-scale holiday gifts to fellow lawmakers with political funds ⑤ Spending 10 million won 10 days before term expiration and traveling alone to the U.S. ⑥ Large legal fees spent despite election commission's 'no problem' response ⑦ Spent millions on supporting fellow politicians ⑧ Political funds treated like petty cash? Paid traffic violation fines ⑨ Why is the political fund account negative near term end? ⑩ What to do with YouTube channels grown with political funds ⑪ The practice of last-minute disposal remains... Remaining political funds average 128,000 won per person ⑫ Lawmakers' accounting reports are difficult for voters to monitor ⑬ Confessions of accounting staff: "Accounting reports are just number games"

"We don't leave any problematic content recorded in the accounting reports. If you make a mistake, you lose your gold badge, so who would do that?"

Mr. Kim, who worked as a secretary in the National Assembly for over 20 years, said in an interview with Asia Economy, "Accounting reports are coordinated in advance with the election commission, so they only contain content that can be shown," adding, "The real problem is black money. Money that is directly circulated without being processed as accounting report expenses."

Most political funds are spent using credit or debit cards, but some transactions are made in cash. The recent case involving former lawmaker Kim Young-sun and political broker Myung Tae-kyun is symbolic. Former lawmaker Kim is suspected of handing over tens of millions of won to Myung through Kim's accounting manager since August 2022. The salary was transferred from Kim's personal account to the account of accounting manager Kang Hye-kyung, who then withdrew the cash and delivered it to Myung.

He said, "Near the end of the term, it should be viewed in connection with the next election's accounting, but even if you look into it, it is not easy to trace past transactions," adding, "Items that should not be spent under election law are hidden, and over time, they cannot be found."

Secretary Lee, who is in charge of accounting, likened the accounting reports to a 'number game.' Lee said, "Because accounting reports are prepared with the awareness that they could be used against you later, it is difficult to confirm illegal matters."

On the 15th, dark clouds heavily covered the National Assembly building. With the 22nd general election concluded on the 10th, attention is focused on how the 21st National Assembly, with just over a month left in its term, will resolve pressing issues such as pension reform and the abolition of the financial investment tax. Photo by Hyunmin Kim kimhyun81@

He added, "Honestly, unless there is a whistleblower from inside, it seems impossible to know whether illegal political funds are being misused."

Mr. Park, who worked as a secretary for over 10 years, said that lawmakers hardly pay attention to political funds near the end of their terms. When Asia Economy asked about accounting reports near term end, most lawmakers replied, "I don't remember well."

Park said, "Lawmakers generally tend to think of donations as their own money," adding, "Near the end of the term, making the donation balance zero is the accounting manager's top skill." He continued, "Lawmakers who lose elections often do not worry about how to use the donations and just leave it to the secretaries to handle as they see fit," adding, "Although it does not meet the public's expectations, many lawmakers still think it is better to have the funds go to secretaries' retirement pay rather than revert to the party."