Korea audit questions crime agency launch and local subsidy change
Version 2: The audit has now been reported in fuller detail, with the opposition's “four nothings” criticism of the new investigative agency, a challenge to the deputy chief's neutrality, and a projected 30.6 trillion won fall in local subsidies added.
In short
South Korea's National Assembly Public Administration and Security Committee audited the Ministry of the Interior and Safety on Oct 6, with Minister Yoon Ho-jung answering lawmakers' questions. Lawmakers from both parties criticised the Serious Crime Investigation Agency's launch without a chief, and Yoon apologised for the late confirmation hearing request. On local finances, Yoon said the 19.24% local subsidy rate is unchanged and that local matching burdens for the new Future Response Fund will be minimised, while an association of local government heads petitioned for a review or a one-year deferral.
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The National Assembly's Public Administration and Security Committee audited the Ministry of the Interior and Safety on Oct 6, with Minister Yoon Ho-jung answering lawmakers' questions, Maeil Business, Newsis, Asia Economy, Kyunghyang Shinmun, Seoul Economic Daily and Yonhap reported. Newsis said a day earlier that the launch of the Serious Crime Investigation Agency without a chief and the Future Response Fund's effect on local subsidies were expected to be contentious. [ 1 , 2 , 3 , 4 , 5 , 6 , 7 ]
Lawmakers from both parties criticised the agency's preparations. People Power Party lawmaker Park Sang-woong said it has no chief, no detention facility, no computer network and no personnel — an irresponsible “agency with four nothings”, Yonhap reported. Democratic Party lawmaker Kim Young-bae said citizens worry human rights protection could be neglected and called the Oct 1 appointment of the deputy chief and seven regional chiefs very late, Newsis reported. People Power Party lawmaker Joo Ho-young questioned deputy chief Jeon Jong-min's neutrality over his record of defending ruling-camp figures, while Democratic Party lawmaker Chae Hyun-il said chief nominee Kim Ji-yong had been vetted twice by the presidential office and faces a hearing next week, Yonhap said. Yoon said he was “very sorry” the agency was not launching together with its head and apologised for the late confirmation hearing request, which the Democratic Party said is set for Oct 14. [ 3 , 7 ]
On local finances, Yoon said “the 19.24% local subsidy rate is completely unchanged”, Asia Economy, Kyunghyang Shinmun and Seoul Economic Daily reported. Kyunghyang said the government plans a 162 trillion won Future Response Fund next year and would base subsidies on domestic taxes after subtracting what is deposited in the fund; local governments that expected subsidies to grow with excess tax revenue fear they will shrink. Seoul Economic Daily put the fall at about 30.6 trillion won and said 15.3 trillion won of the fund goes to a local account, including 3.5 trillion won as a freely usable local future growth grant. Yoon said projects would be fully funded so local governments face no matching burden, and total subsidies would rise from about 63 trillion won this year to about 70 trillion won next year. [ 4 , 5 , 6 ]
People Power Party lawmaker Kwon Young-jin said excess tax revenue was being put in the fund so the central government could control it, asking whether any government had taken money due to local subsidies for a central fund, Yonhap and Asia Economy reported. Yoon said the fund was for strategic investment. On local debt, Yoon blamed the previous Yoon Suk-yeol administration, and Kwon retorted, “Are you again blaming the Yoon Suk-yeol government?” [ 4 , 7 ]
Also on Oct 6 the association of mayors, county heads and district heads adopted its first petition since the launch of ninth-term local administrations, seeking a full review of the subsidy calculation change, Kyunghyang Shinmun reported. It said excluding part of domestic taxes would cut total subsidies and weaken local fiscal stability, autonomy and predictability, and urged a one-year deferral or a phased rise in the subsidy rate if change is unavoidable. Co-chair Kim Byung-nae said excess tax revenue should not weaken basic local governments' finances. [ 5 ]
Before questioning, People Power Party secretary Kang Myung-gu said police had summoned party lawmaker Kim Jae-sub as a suspect over suspicions about former Seoul mayor candidate Chung Won-oh's Cancun trip, calling it political revenge; Democratic Party secretary Lee Hae-sik said the summons would have been coordinated and urged against treating it as an attack, Newsis and Yonhap reported. [ 3 , 7 ]
Why it matters
The audit puts the interior ministry's handling of a new national investigative body and of local government financing under parliamentary scrutiny. How the government resolves the dispute over the subsidy calculation will shape how much tax revenue local governments receive and how much say they have over it.
Key facts
- The National Assembly's Public Administration and Security Committee audited the Ministry of the Interior and Safety on Oct 6, with Minister Yoon Ho-jung answering lawmakers' questions. [ 2 , 3 , 4 , 5 , 6 , 7 ]
- Ruling and opposition lawmakers criticised the Serious Crime Investigation Agency's launch without a chief. [ 3 , 7 ]
- Yoon said the 19.24% local subsidy rate is unchanged. [ 4 , 5 , 6 , 7 ]
- The government plans to create a 162 trillion won Future Response Fund next year. [ 5 , 6 ]
- Of the fund's local account, 3.5 trillion won is a freely usable local future growth grant, Seoul Economic Daily reported. [ 4 , 6 ]
- Seoul Economic Daily reported local subsidies would be about 30.6 trillion won lower than under the current calculation method. [ 6 ]
- The association of mayors, county heads and district heads adopted a petition seeking a full review of the subsidy calculation change, or a one-year deferral. [ 5 ]
- The Democratic Party said the confirmation hearing for Kim Ji-yong, the first nominee to head the agency, is set for Oct 14. [ 3 ]
Confirmed by several sources
- The National Assembly's Public Administration and Security Committee held its audit of the Ministry of the Interior and Safety on Oct 6, with Minister Yoon Ho-jung answering lawmakers' questions. [ 2 , 3 , 4 , 5 , 6 , 7 ]
- Lawmakers from both the ruling and opposition parties raised concerns about the Serious Crime Investigation Agency launching without a chief. [ 3 , 7 ]
- Yoon said the 19.24% local subsidy rate is unchanged. [ 4 , 5 , 6 , 7 ]
- The government plans to create a 162 trillion won Future Response Fund for next year. [ 5 , 6 ]
- Yoon said the government would reduce local governments' burden of adding their own budgets to Future Response Fund projects. [ 4 , 5 , 6 ]
Still unclear
- Whether the local subsidy calculation base will be changed as planned, and whether the government will accept the local government association's request for a full review or a one-year deferral. Reported as a government plan and a petition request; no decision is reported in the documents.
- Whether the Serious Crime Investigation Agency will begin operating without a chief, given the confirmation hearing for nominee Kim Ji-yong set for Oct 14. The documents describe the launch without a head and the scheduled hearing but do not state whether the chief will be appointed before launch.
- The projected fall of about 30.6 trillion won in local subsidies next year. Stated by one outlet only, Seoul Economic Daily.
- Whether the police summons of People Power Party lawmaker Kim Jae-sub as a suspect was political retaliation. Two outlets report the summons, but the characterisations come from party lawmakers and no police statement is cited.
What local media are saying
Timeline, local time
- Oct 5: Newsis reports the Oct 6 audit of the interior ministry is expected to focus on the agency's launch without a chief and the Future Response Fund's effect on local subsidies. [ 1 ]
- Oct 6: Maeil Business reports Minister Yoon Ho-jung and other attendees answering lawmakers' questions at the National Assembly committee audit. [ 2 ]
- Oct 6: Newsis reports ruling and opposition lawmakers raising concerns at the audit about the agency launching without a head, and Yoon apologising for the late confirmation hearing request. [ 3 ]
- Oct 6: Asia Economy reports Yoon saying the government will minimise local matching burdens, with 3.5 trillion won of the 15 trillion won local account granted as general revenue. [ 4 ]
- Oct 6: Kyunghyang Shinmun reports Yoon saying the 19.24% subsidy rate is unchanged, and that the association of local government heads adopted a petition seeking review or a one-year deferral. [ 5 ]
- Oct 6: Seoul Economic Daily reports a projected 30.6 trillion won fall in local subsidies and Yoon saying projects would be fully funded so local governments face no matching burden. [ 6 ]
- Oct 6: Yonhap reports both parties criticising the agency's preparations and the parties' disagreement over the local subsidy base. [ 7 ]