English translation of the original Korean report. Images and source documents may contain Korean text.

Daily allowance, meal expenses, and transportation expenses totaling 475,600 won disbursed from general accounting travel expenses… a statutory organization funded by membership fees and subsidies

The Daegu Chamber of Commerce and Industry (Chairman Park Yoon-kyung) processed 475,600 won in expenses for employees who attended Executive Vice Chairman Lee Sang-gil’s daughter’s wedding as general accounting domestic business trip expenses.

The DCCI explained that employees go on business trips for executive and employee family events held in other regions, but stated that there are no internal regulations stipulating this.

On the 3rd, according to the DCCI’s expenditure approval request form, the Planning and Management Team requested approval for 160,000 won for daily allowance, 72,000 won for meal expenses, and 243,600 won for transportation expenses as domestic business trip expenses. On the voucher, for each item, the purpose ‘Attendance at Executive Vice Chairman Lee Sang-gil’s child’s wedding’ is written, and the total amount paid per employee in the attached payment statement is the same as the voucher amount.

The wedding was held on Sunday, September 20, at a wedding hall in Gangnam-gu, Seoul. The DCCI’s travel expense regulations stipulate travel expense standards for executives and employees traveling ‘on Chamber business’. Business trip expenses under these regulations were used for an executive’s family wedding held on a holiday.

A corporate card was also used. On the day of the wedding, the amount paid at a Korail Retail convenience store at Dongdaegu Station was recorded as ‘Executive Vice Chairman’s child’s wedding business consultation expenses’ and processed separately from travel expenses, under other operating expenses.

The DCCI acknowledged the facts. A DCCI official said in a phone call with Newsfield, “Not only for executives but also for employees, when family events are in other regions, the relevant department goes to offer condolences and congratulations, and they all go on business trips then too,” adding, “It is done for the welfare of all executives and employees.”

He said the convenience store payment “was for a cup of coffee on the way to Seoul.” He explained that “if such an event occurs under the general accounting travel expenses item, it is all disbursed.” To the question of whether there are internal regulations for business trips for family events, he replied, “There are no special regulations.”

The general accounting from which these business trip expenses were disbursed is filled with membership fees from member companies, various fees, and public subsidies. According to the Chamber of Commerce and Industry Act, a Chamber of Commerce and Industry is a corporation established with the approval of the city/provincial governor, and its purpose is to represent the interests of the local commercial and industrial sectors and provide information and education to member companies. The Korea Chamber of Commerce and Industry supervises and oversees the operations and accounting of regional Chambers of Commerce and Industry nationwide.

Funds primarily come from three sources. First are membership fees. In metropolitan cities, businesses with sales tax (VAT) of 500 million won or more automatically become ‘deemed members,’ and members must pay fees according to the law. Second are fees from certification and examination businesses, such as issuing certificates of origin required for import/export documents and national qualification examinations. Third are commissioned projects and subsidies entrusted by the state and local governments.

Within the DCCI, there are also organizations that undertake and operate government and local government projects, such as the Daegu Intellectual Property Center and the Daegu Regional Human Resources Development Committee Secretariat. The budget is approved by the standing committee every year, and members can view or request copies of the financial statements.

■ Public officials and public institutions: ‘No business trips unless for official duties’… exceptions also by document

The Ministry of Personnel Management’s ‘Precedent Regulations on National Public Officials’ Service and Disciplinary Matters’ defines a business trip as ‘performing official duties outside the regular workplace by order of a superior’ and states that matters unrelated to official duties should not be processed as business trips.

Exceptions are narrow. The same regulations allowed only ‘a few individuals’ attending a subordinate employee’s family event in the capacity of an institutional representative to be on a business trip, and attached the condition that the employee with the family event and the business traveler must work for the same institution. It also included examples where personal attendance due to relationships or other reasons is not considered a business trip.

The travel expense rules of the National Daegu Science Museum, a public institution also located in Daegu, also stipulate travel expenses for executives and employees traveling ‘for work’ and require that matters not covered by the rules follow the public officials’ travel expense regulations and processing standards. The DCCI has been disbursing family event expenses under the travel expense item without such standards.

The DCCI emphasized that it is a “100% private organization.” The DCCI stated, “It is neither a government-invested institution nor an organization under the city.” However, the DCCI is a statutory organization that receives funds from member companies, for whom the law mandates membership fees, as well as public subsidies.

Vice Chairman Lee is a former Administrative Vice Mayor of Daegu City. While running in the People Power Party’s Daegu Buk-gu District Head primary for this year’s June 3 local elections, he caused controversy by taking unpaid leave while retaining his position as Executive Vice Chairman. His resignation submitted on March 11 was not accepted, and he returned on April 24 after being eliminated from the primary.