Gimpo mayor orders sweeping audit of public institutions after Gimpo FC embezzlement

Gimpo Mayor Lee Gi-hyeong announced sweeping measures to restore public integrity and prevent a recurrence following the embezzlement of 5.8 billion won ($3.85 million) in public funds at Gimpo FC.

Lee held an emergency press conference at Gimpo City Hall on Tuesday, offering a public apology. "I deeply apologize to the citizens for the serious misconduct that occurred at one of the city's invested and funded institutions," he said. "We will immediately launch a special audit covering all local public enterprises and invested and funded institutions."

According to the city, Gimpo FC — a city-invested and funded foundation — confirmed Monday that an internal employee had embezzled more than 5.8 billion won in public funds, reported the matter to police and notified the city.

The city plans to conduct a special audit of all local public enterprises and invested and funded institutions, including Gimpo FC, covering every area of budget execution — accounting, fund disbursement, contract operations, subsidy management, corporate card usage and internal control systems.

If misconduct or supervisory failures are identified during the audit, those responsible will be held strictly accountable, the city said.

The city also said it would pursue full recovery of the embezzled funds and seek both civil and criminal liability against all parties involved.

"This incident occurred during the eighth elected-term administration, but restoring public trust and establishing discipline within the civil service is the responsibility of the ninth elected-term administration now in charge," Lee said at the press conference. "We will use this as an opportunity to pursue reform across public institutions as a whole, not treat it as an isolated problem."

Lee also said the city would overhaul its accounting and audit systems by restructuring arrangements that concentrate authority in a single individual, establishing a multi-layered accounting verification system, expanding regular audits with external experts, strengthening whistleblower protections and making audit results public.

"We will make integrity, accountable governance and transparent administration the core values of city management, and do our utmost to bring about fundamental reform so that citizens can trust public institutions again," Lee said. "We will get to the bottom of this case and ensure that responsibility is fully assigned."