Why Now, After a Decade-Old Scandal? The Untold Story Behind the Arrest of the 230 Billion KRW 'Shaolin Temple CEO' [Current Affairs Show]

Embezzlement and Sexual Misconduct Allegations, Monk Status Revoked
Mass Purge of Officials at China's National Religious Affairs Administration
Caught in the Crossfire of China's Power Struggle?

The recent arrest of the abbot of Shaolin Temple in China on charges of embezzling temple funds and various other corrupt practices has sent shockwaves through the Chinese political sphere. Some analysts argue that this is more than just a case of religious corruption, suggesting that it may indicate cracks forming in President Xi Jinping's power structure.

Seungshin Seok, former abbot of Shaolin Temple who led the temple for 38 years but was stripped of his monk status due to various corruption allegations. Chinese Weibo

The central figure, Shi Yongxin, the abbot of Shaolin Temple, has held multiple powerful positions beyond the religious world, including Chairman of the Henan Province Buddhist Association, Vice President of the Buddhist Association of China, and a delegate to the National People's Congress. Thanks to his business acumen, Shaolin Temple grew from a small monastery in China into a massive entertainment group with annual revenues of 230 billion won. For this reason, he is often referred to as the CEO of Shaolin Temple rather than simply its abbot.

Shi Yongxin became a monk at the age of 16, was appointed acting abbot at just 22, and officially became abbot at 34. In 1987, when he became acting abbot, Shaolin Temple was devastated in the aftermath of the Cultural Revolution, with only about 10 monks remaining. Despite this desperate situation, he returned after earning an MBA through studies in the United States and completely transformed the temple.

He launched an aggressive branding campaign for Shaolin Temple, building its image as the "home of Chinese martial arts" and investing heavily in film and entertainment businesses. Today, Shaolin Temple has become a corporate group with 16 subsidiaries under the holding company Shaolin Intangible Asset Management Company. The temple has registered over 700 trademarks, generating enormous profits.

Hundreds of monks enter Shaolin Temple each year, but in reality, most receive martial arts and acting training before moving on to careers in the film industry, entertainment, police, or private security firms, making the temple function as a kind of academy. Shi Yongxin has leveraged Shaolin Temple's vast financial resources to exert significant influence over local governments through lobbying in central politics and investments in real estate redevelopment projects across the country.

This arrest has drawn even more attention both inside and outside China because the corruption allegations surrounding Shi Yongxin are not new-they have been raised for over a decade. The current issues of embezzlement, sexual misconduct, and personal scandals were already widely exposed in 2015. At that time, disciples of the temple reported his various wrongdoings online, prompting an official investigation, but he was cleared of all charges. Last year, new expos?s emerged amid rumors that he was trying to appoint his son as successor, but these too ended with no charges filed.

Despite numerous allegations, Shi Yongxin managed to lead Shaolin Temple for 38 years and survive multiple regime changes, largely thanks to powerful political patrons. He is known to have been close to the Shanghai clique centered around former President Jiang Zemin, and even after Xi Jinping came to power, he maintained relationships through active lobbying. In particular, he played a promotional role for the party by acting as a bridge to Buddhist regions such as Tibet and Central Asia during China's Western Development Policy and the Belt and Road Initiative, earning protection from the authorities.

This time, however, the situation was different. Authorities applied multiple previously raised corruption charges simultaneously and arrested him, and the Buddhist Association immediately stripped him of his monk status. Analysts in China believe these changes are closely linked to the power struggle within the Xi Jinping administration.

Shaolin Temple Official Website

In fact, since June, the National Religious Affairs Administration, which oversees all religions in China, has become a major target in the anti-corruption campaign. The director and all senior officials have either been arrested or are under investigation. This agency, which controls vast sums of money and wields significant influence over local governments, was mostly staffed by Xi Jinping's close associates. Following the large-scale purge of Xi's allies in the military, many local administrators and heads of autonomous regions have also been purged, and now religious figures are being targeted as well, fueling speculation that President Xi's power base is being shaken.

Currently, the secret Beidaihe meeting of the Communist Party elite is underway in China. It is expected that clues regarding President Xi's grip on power and the succession structure may emerge from this meeting. Notably, President Xi has not appeared in public for over a month ahead of this gathering. With the fourth plenary session of the 20th Central Committee scheduled for October to decide the next administration, the outcome of the Beidaihe meeting is extremely important. If President Xi fails to secure a fourth term, speculation about a power transition or his possible ouster is likely to intensify.

These political changes in China are expected to have a significant impact on US-China relations as well. In the current US-China tariff negotiations, China has used a strong resistance strategy, leveraging its rare earth supply as a bargaining chip to secure an extension from the United States. However, if the power leak in Xi Jinping's administration becomes an established fact, the US is likely to exploit this as a weakness.

The expected Xi Jinping-Donald Trump summit at China's Victory Day on September 3 or at the Asia-Pacific Economic Cooperation (APEC) meeting in Gyeongju in October is likely to be a key turning point. Depending on whether President Xi appears as a strong leader confirmed for a fourth term or meets in a weakened position due to power struggles, the direction of US-China tariff negotiations and US policy toward China could change dramatically. The changes in China's power structure hidden behind the surface event of the Shaolin abbot's arrest could also have significant repercussions for South Korea. As the political situation in China becomes more volatile, the stability of Northeast Asia may be increasingly affected, making close observation essential at this time.