A government without accountability or solutions

The Board of Audit and Inspection (BAI) has confirmed that the Presidential Office violated the National Contract Act and other relevant laws during the contract process for construction projects related to the relocation of the presidential office and residence to Yongsan. This comes after a 20-month audit, initiated in December 2022, with the BAI approving a report on the findings late last month. The BAI is expected to formally issue a warning to the Presidential Office next week.

The audit uncovered multiple violations of legal procedures in selecting private contractors for the remodeling work. The National Contract Act’s Article 26 strictly limits the conditions under which government agencies can award private contracts, but regulations were bypassed under the pretext of the urgent need to complete the relocation. The BAI also discovered that one subcontracted company lacked the necessary qualifications. There were further indications that internal personnel attempted to improperly influence the contractor selection process. Last October, the BAI requested a prosecution investigation into allegations that a senior official from the Presidential Security Service had colluded with the company tasked with installing bulletproof glass at the presidential office, an investigation that remains ongoing.

This audit, however, did not originate from the BAI. It began in October 2022 when the civic group People's Solidarity for Participatory Democracy filed a public audit request. Controversy had already erupted after it was revealed that the company responsible for the presidential residence’s remodeling—previously the Foreign Minister’s official residence—was one of the sponsors of exhibitions run by Kobana Contents, a company headed by First Lady Kim Keon Hee. Further scrutiny found that the contractor lacked the necessary general construction license to carry out expansion work. After extending the audit seven times, the BAI finally reached its long-delayed conclusions.

The relocation of the Presidential Office to Yongsan was a hasty decision. The plan was announced 10 days after the election and executed within 50 days. The initial cost estimate of 49.6 billion won has since ballooned to over 64 billion won. If illegalities occurred during this rushed move, accountability must be enforced. The Presidential Office’s recent statement—claiming that most construction contracts were signed by agencies under the previous administration—is an unacceptable attempt to shift blame. The BAI cannot simply dismiss this as a minor procedural violation. There must be a thorough investigation into whether First Lady Kim influenced the selection of contractors, along with other unresolved suspicions.