Exclusive Suwon City Environmental Bureau Executive Served as Registered Director of Environmental Equipment Company for Years

A senior civil servant from Suwon City's Environmental Bureau served as a registered director of an environmental equipment company for an extended period, and records showing the official's stake in the company have been confirmed.

According to Suwon City and others on the 18th, a senior official A from the Environmental Bureau of Suwon City (environmental specialist) was listed as an internal director on the corporate registry of environmental equipment company K for several years.

According to the corporate registry, company K was established in December 2008. Its business purposes include environmental equipment construction, landscape construction work, water and sewage system installation work, machinery and equipment installation work, and design, manufacture, installation, and sales of related equipment. In 2012, design, manufacturing, installation, and sales of renewable energy and power generation equipment were also added to the business purposes.

The period during which official A is directly confirmed to have been listed as an executive in the corporate registry is from December 2011 to March 2020, approximately 8 years and 4 months.

After being reappointed as director in December 2011, A resigned from the director position in March 2014 and took office as an internal director on the same day. Subsequently, the official was reappointed as an internal director in March 2017 and retired in March 2020.

The initial appointment date is known to predate December 2011. The December 2011 registration reason is listed not as 'appointment,' which denotes initial appointment, but as 'reappointment,' indicating reappointment after the term expires. However, currently the exact date of initial appointment cannot be confirmed through the corporate registry alone on the Supreme Court Internet Registration Office site.

Records showing official A held a stake in company K were also confirmed.

According to corporate information based on NICE Evaluation Information, official A's stake in company K is shown as 43.5%. However, based solely on that information, it cannot be confirmed whether the official currently holds the same stake. Representative director B's stake is listed at 49.0%. Director B is also known to be a former civil servant from Suwon City Hall.

The Local Civil Service Act and others establish standards regarding civil servants' for-profit business and concurrent positions.

Article 56 of the Local Civil Service Act stipulates that civil servants shall not engage in for-profit business outside of their official duties and cannot assume concurrent positions without permission from the head of their affiliated institution.

Article 10 of the Local Civil Service Code of Conduct specifies regarding the prohibition of for-profit business: 'becoming an executive such as a director of a for-profit private company' and 'investing in a third party's business related to one's duties,' among others.

The Ministry of the Interior and Safety's 'Regulations on the Code of Conduct for Local Civil Servants' explains this more specifically. Directors of private companies include both registered and non-registered directors, and it explicitly states that 'investment in a third party's business related to one's duties' includes purchasing stocks and bonds related to duties and stake investments in for-profit businesses.

The city confirmed that there was no report regarding concurrent position or for-profit business related to official A's listing as an executive of company K. The city also maintains the position that civil servants cannot hold concurrent positions as executives of private companies regardless of whether a report was filed.

The city has launched an investigation into official A while planning to take measures to strengthen awareness of compliance regulations within the civil service.

A city official stated, "We send guidance notices regarding concurrent positions one to two times per year and ensure accessibility for all civil servants. We will operate a voluntary disclosure period to allow officials to self-correct any potentially overlooked concurrent positions, strengthen awareness of the Local Civil Service Code of Conduct among all staff, and conduct thorough oversight to align with the integrity and fairness required of the civil service."