Court clerk embezzled 5.6bn won in deposits; only 12% recovered in Busan
In short
A former court employee embezzled about 5.6 billion won in court deposit and auction custody money while working at the Busan and Ulsan district courts, spending most of it on derivatives investments, according to data submitted to opposition lawmaker Seo Young-kyo's office. Only about 580 million won, or 12 percent, of the roughly 4.82 billion won taken in Busan has been recovered, and the recovery total in Ulsan is unclear. The employee was dismissed, six colleagues were disciplined, and a 15-year prison sentence was finalized last year, the reports said.
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A former court employee embezzled about 5.6 billion won in court deposit money and auction custody funds while working at the Busan and Ulsan district courts, and most of it has not been recovered, according to data submitted to the office of Democratic Party lawmaker Seo Young-kyo by the Supreme Court's National Court Administration and courts. [ 1 , 2 ]
At the Busan District Court, the employee, identified as A, took about 4.82 billion won in 2022-2023 through 53 unauthorized withdrawals, the reports said. About 580 million won, roughly 12 percent, has been recovered. The case surfaced in 2023 when the city of Busan asked about documents needed to receive deposit money and found the deposit balance was zero. According to the reports, A changed the recipient in cases where the recipient was listed as 'unknown' to his own sister through the court's trial affairs system, paid out the funds and forged documents to close the cases, also counting on records being destroyed after their retention period. A began taking money in 2022 while working in the deposit section of the Busan court's comprehensive civil affairs office after building about 400 million won in derivatives investment debt, the reports said. After a personnel transfer took him off deposit duties, he still visited the office, saying he had unfinished work, and borrowed a work PC to take more funds. [ 1 , 2 ]
Busan District Court dismissed A and disciplined six related employees, including the deposit officer and the head of the comprehensive civil affairs office, with reprimands and two-month suspensions. The court formed a recovery team, but A mostly lost the money in derivatives investments. After the case, the National Court Administration widened the approval scope for deposit payments, introduced electronic approval and blocked deletion of correction records, the reports said. The courts were reprimanded by the Board of Audit and Inspection this year for not notifying it in time that deposit and court custody money had disappeared. [ 1 , 2 ]
The Busan investigation also uncovered that A had embezzled 780 million won at the Ulsan District Court, his previous workplace, in 2020 while working as an auction participation officer, by reducing auction distribution amounts and sending the difference to family accounts. How much of the Ulsan money has been recovered is not clear. [ 1 , 2 ]
A was indicted on embezzlement and other charges under the Act on Aggravated Punishment of Specific Economic Crimes, and a 15-year prison sentence was finalized last year. Seo said the courts' audit, personnel and accounting systems did not function until the same employee took 5.6 billion won while passing through two courts, and called the failure to notify the Board of Audit and Inspection for about two years a clear evasion of responsibility. [ 1 , 2 ]
Why it matters
The case points to failures in the courts' own audit, personnel and accounting systems over several years, as described by the lawmaker who released the data. The courts have since changed how deposit payments are approved and recorded, and the judiciary was reprimanded by the Board of Audit and Inspection for not reporting the losses in time.
Key facts
- A former court employee identified as A embezzled about 5.6 billion won in court deposit and auction custody money at the Busan and Ulsan district courts, according to data submitted to Rep. Seo Young-kyo's office by the National Court Administration and courts. [ 1 , 2 ]
- At the Busan District Court, about 4.82 billion won was embezzled in 2022-2023 through 53 unauthorized withdrawals, and only about 580 million won, or 12 percent, has been recovered. [ 1 , 2 ]
- The Busan embezzlement was discovered in 2023 when the city of Busan inquired about documents needed to receive deposit money and found the deposit balance was zero. [ 1 , 2 ]
- A manipulated the court's trial affairs system to change the recipient of deposits in cases with an 'unknown' recipient to his own sister, and forged documents to close the cases. [ 1 , 2 ]
- A had about 400 million won in derivatives investment debt when he began taking deposits in 2022, and after being moved off deposit duties he visited the civil affairs office and borrowed a work PC to take more funds. [ 1 , 2 ]
- Busan District Court dismissed A and disciplined six related staff, including the deposit officer and the head of the comprehensive civil affairs office, with reprimands and two-month suspensions. [ 1 , 2 ]
- A also embezzled 780 million won at the Ulsan District Court in 2020 by reducing auction distribution amounts and depositing the difference into family accounts; how much of that has been recovered is unclear. [ 1 , 2 ]
- A was convicted of embezzlement under the Act on Aggravated Punishment of Specific Economic Crimes and a 15-year prison sentence was finalized last year. [ 1 , 2 ]
Confirmed by several sources
- A former court employee embezzled about 5.6 billion won in deposit and auction custody money at the Busan and Ulsan district courts. [ 1 , 2 ]
- About 4.82 billion won was taken in Busan through 53 unauthorized withdrawals in 2022-2023, with about 580 million won recovered. [ 1 , 2 ]
- The Busan case surfaced in 2023 when the city of Busan found the deposit balance was zero. [ 1 , 2 ]
- Busan District Court dismissed A and disciplined six related employees. [ 1 , 2 ]
- A 780 million won embezzlement at the Ulsan District Court in 2020 was uncovered during the Busan investigation. [ 1 , 2 ]
- A's 15-year prison sentence was finalized last year. [ 1 , 2 ]
- The National Court Administration expanded the approval scope for deposit payments, introduced electronic approval and blocked deletion of correction records after the case. [ 1 , 2 ]
- The courts were reprimanded by the Board of Audit and Inspection this year for not notifying it of the lost deposit and court custody money in time. [ 1 , 2 ]
Still unclear
- How much of the 780 million won embezzled at the Ulsan District Court has been recovered. Yonhap states this is not clear, and Maeil Business says the specific recovery figure has not been confirmed.
- Whether any further oversight or disciplinary action follows beyond the Board of Audit and Inspection's reprimand and the internal court measures described. The documents describe only the measures already taken.