Audit finds Daejeon data center fire a 'man-made disaster,' blames unlicensed contractors

A fire last September at the Daejeon center of the National Information Resources Service knocked out 709 critical government information systems and triggered a massive administrative breakdown. A Board of Audit and Inspection probe has found it was a "comprehensive man-made disaster" caused by illegal subcontracting to unregistered electrical contractors and negligent on-site safety management. The audit also confirmed that the agency blocked firefighters from spraying water during the blaze, citing concerns about damage to its computer network, in violation of its own basic emergency response protocols.

The Board of Audit and Inspection released the key findings of its audit into the fire's causes and the response and recovery efforts Monday, announcing it had identified 18 violations and irregularities. It called on the Ministry of Interior and Safety to impose heavy disciplinary measures — including suspension — on those responsible, including the team leader in charge.

According to the board, total damages from the fire are estimated at 351.1 billion won ($258 million), comprising 101.7 billion won in direct losses such as building and facility damage, and 249.4 billion won in indirect and intangible losses including the destruction of work data, lost civil servant productivity and opportunity costs to the public.

The audit found that the relocation of lithium batteries in the basement — the origin of the fire — was riddled with illegal subcontracting and unqualified work. The prime contractors subcontracted the work without authorization, and the subcontractor then illegally re-subcontracted the battery rack dismantling and reinstallation to two firms not registered to perform electrical construction work. The agency received reports that outside workers had been brought in but failed to verify their qualifications or registration status.

Workers from the unregistered firms proceeded with the dismantling work after cutting power to only one of eight battery racks and without properly insulating the cables. Sparks eventually flew between the battery racks, setting off a major fire.

The initial response after the fire broke out compounded the chaos. Agency staff failed to cut power to the server room or install waterproof covers as required by their emergency manual. Instead, they asked firefighters on the scene to hold off on water suppression, saying they were worried about damage to the computer network. Water was not deployed until 11:13 p.m. — three hours after the fire started — by which point a battery thermal runaway had already spread out of control.

The agency had also squandered an earlier opportunity to prevent the disaster. In May 2024, it improperly refused a fire safety inspection by the National Fire Agency, citing the server room as a "security zone," and missed the chance to have key facilities — including server room 7-1, which was completely destroyed in the fire — examined.

The backup and disaster recovery systems were also found to be wholly inadequate. The agency had excluded data from the Ministry of Interior and Safety's G-Drive and the National Fire Agency's big data systems from its backups on the grounds that the files were unstructured or large in volume, resulting in their permanent loss. In addition, 237 of the 709 systems stored both their primary and backup data in the same server room, meaning both were destroyed simultaneously in the fire. Of the 709 systems, only 54 — or 7.6 percent — had disaster recovery systems in place, and only seven, or 0.98 percent, were actually used in the recovery effort.

The board called on the minister of interior and safety to discipline those responsible, including suspending the team leader who neglected safety management and oversight. It also called for disciplinary action against those who refused the fire safety inspection without justification, and notified the National Fire Agency to prepare measures to file criminal complaints under relevant laws. The board further notified the agency to prepare measures to impose sanctions on the contractors and seek damages from them.