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Frequent Wildfires, but Forest Product Disaster Insurance System Remains 'Paralyzed'

Built at a Cost of 4.1 Billion Won, Left 'Powered Off' for a Decade
An Additional 7.4 Billion Won Needed for Restoration: A Classic Case of Wasteful Spending
Seo Samsuk: "Compensation for Forest Damage... The System Must Be Normalized"

Frequent Wildfires, but Forest Product Disaster Insurance System Remains 'Paralyzed' Seosamsuk, Democratic Party of Korea lawmaker.

Amid a series of large-scale wildfires causing extensive damage to forest resources, criticism has been raised that the forest product disaster insurance system has been left idle for over a decade without being put into operation.


According to data submitted by Democratic Party of Korea lawmaker Seo Samsuk (Yeongam, Muan, and Shinan in South Jeolla Province) on October 19, the Korea Forest Service pushed for the institutionalization of a forest product disaster insurance system following the 2012 revision of the Agricultural and Fishery Disaster Insurance Act, and spent 4.1 billion won between 2013 and 2015 to establish the 'forest product disaster insurance system.'


However, the introduction of the insurance was delayed due to opposition from fiscal authorities regarding the budget, and no follow-up tasks such as the development of new products or improvement of application systems were carried out. As a result, the system has never been operated and is currently left unused, with even the power supply disconnected.


Due to this prolonged inactivity, core equipment components of the system have been discontinued, and even the company that built the system has gone out of business, necessitating a substantial additional budget just for restoration. While 4.1 billion won has already been invested, an additional 7.4 billion won is required for recovery, bringing the total cost to 11.5 billion won. This is being cited as a prime example of wasteful use of taxpayer money.


Seo pointed out that while the National Forestry Cooperative Federation, which is responsible for managing the system, has not allocated any budget for system improvements since 2018, it spent approximately 42 million won during the same period on services such as 'cafe brand naming.' He raised the issue of management responsibility, noting that this also violates regulations under the State Property Act, which stipulate that those entrusted with management duties are liable for damages if they neglect their obligations.


Seo stated, "It is unacceptable to waste taxpayer money by spending nearly twice the original budget to restore a system that was left neglected after being built," and urged, "The Korea Forest Service and the National Forestry Cooperative Federation must immediately devise a plan to normalize the system so that effective compensation can be provided for forest resource damage caused by natural disasters."


© The Asia Business Daily(www.asiae.co.kr). All rights reserved.


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