Democratic Party's Gyeonggi Provincial Committee Faces Mounting Troubles, Typhoon on the Horizon

The Democratic Party's Gyeonggi Provincial Committee has been subjected to a police search and seizure over allegations of illegal membership recruitment. Separately, accounting misconduct allegations at the provincial committee have led to investigation by the election commission and criminal referral, raising attention to whether additional forced investigations will follow.

According to the Gyeonggi Southern Police Agency on the 8th, police conducted a search and seizure of the Democratic Party's Gyeonggi Provincial Committee in Paldal-gu, Suwon on the 7th.

The Anti-Corruption and Economic Crime Investigation Division of the Gyeonggi Southern Police Agency sent investigators to the provincial committee office and secured member lists, membership application documents, and digital data. This search and seizure is related to allegations of illegal membership recruitment involving Suwon Mayor Lee Jae-jun's side and is the third forced investigation following searches of the Suwon City Hall office and residences of key individuals. After receiving a complaint in May, police have continued their investigation, and plan to summon Mayor Lee and related parties for questioning once analysis of seized materials is complete.

Suspicions surrounding provincial committee accounting are also under investigation. A former aide to Congressman Kim Seung-won (Suwon, District A) and others have raised allegations of 'salary payback' - where while Congressman Kim served as provincial committee chair, some party officials were given additional payments beyond regular salaries and then refunded the money to separate accounts. Issues were also raised including reporting of hotel venue rental fees different from actual educational locations and inflated workshop costs.

Documentation submitted by the former aide is known to contain 35 suspected accounting fraud cases across 7 categories. Provincial committee and national party officials have stated regarding the salary payback allegations that business promotion expenses are included in salaries, and that after verifying receipts and supporting documents for usage amounts, there are no problems. Conversely, the Central Election Commission's Political Funds Investigation Division has taken the position that if money reported as salary was actually used for different purposes, it could constitute a violation.

The Gyeonggi Provincial Election Commission stated it is investigating after receiving relevant reports. An election commission official explained, "The related accounting documents are extensive and require careful review, and the timing and results of any dispositions have not been determined."

On the 2nd, Congressman Kim and the then provincial committee accounting officer, administrative director, and general affairs officer were referred to the Suwon Major Crimes Investigation Division on allegations including embezzlement and violations of the Political Funds Act. The complaint is reported to contain overall accounting suspicions including additional salary payments and refunds, operation of undisclosed accounts, and favoritism toward specific contractors.

While clarifications stating there are no problems have come from within the party, external investigations into the legality of accounting procedures continue. If evidence supporting criminal charges is secured in the future, there is also a possibility that this could lead to account tracing or search and seizure of the provincial committee office and related parties.

Issues with party-level verification also emerged in the election campaign contract for Governor Choo Mi-ae's camp. Democratic Party Chairman Kim Min-seok stated on the 18th of last month that regarding the transaction in which Governor Choo's camp paid approximately 2.1 billion won to ㈜Park Si-young, he would examine the appropriateness of the contract price, the content of the services, and the transparency of the working relationships. The national party, while clarifying there are no problems regarding provincial committee accounting, mentioned the need for review regarding separate election expense controversy.

The amount paid by Governor Choo's camp to ㈜Park Si-young is understood to be approximately 2.09 billion won. Regarding this transaction, controversy has emerged over the appropriateness of the contract as well as conflicts of interest - whether it was appropriate for Park Si-young's representative to present projections favorable to Candidate Choo on broadcast while conducting transactions with the camp.

Governor Choo countered that it was a normal contract, and Park also stated that the amount included payments to external contractors and that he did not intentionally promote the candidate.

What consequences will follow from the election commission's investigation into provincial committee accounting allegations, the investigative agency's review of criminal referral content, and the party's verification of the election campaign contract will be key issues going forward.

Police stated "we plan to conduct investigations swiftly within the statute of limitations".