It has been confirmed that more than 100 current and former NongHyup executives and employees gave at least 1 million won in condolence money when the mother-in-law of National Agricultural Cooperative Federation Chairman Kang Ho-dong died in May last year. Five people gave more than 3 million won, and some are believed to have given more than 10 million won. Police are investigating whether the excessive condolence money violated the Improper Solicitation and Graft Act.
According to a compilation of ChosunBiz reporting on the 3rd, the Seoul Metropolitan Police Agency's anti-corruption unit recently summoned and questioned current and former NongHyup executives and employees on suspicion of violating the Improper Solicitation and Graft Act. A former National Agricultural Cooperative Federation chairman and senior officials at a NongHyup affiliate are among them, according to reports.
Earlier, in July, during a search and seizure of the National Agricultural Cooperative Federation secretary's office and other locations, police obtained a file organizing the condolence money ledger for Chairman Kang's mother-in-law's funeral. The aggregates of condolence money is said to be around 1 billion won.
Depending on the progress of the investigation, Chairman Kang could face charges of violating the Improper Solicitation and Graft Act. The National Agricultural Cooperative Federation is designated as a public institution-related organization under the Public Service Ethics Act, and executives and employees of public institution-related organizations are subject to the Improper Solicitation and Graft Act.
Regardless of the stated purpose, they cannot receive money or valuables exceeding 1 million won in a single instance or 3 million won in a fiscal year from the same person. For family events, the limit is 50,000 won, and for wreaths or floral tributes given in lieu of congratulatory or condolence money, the limit is 100,000 won. Choi Min-hee, a lawmaker with the Democratic Party of Korea, was also reported last Oct. for allegedly violating the Kim Young-ran Act after receiving congratulatory money exceeding 100,000 won from an audited body at her daughter's wedding.
A NongHyup official said, "As a rule, when high-ranking officials such as heads of public institution-related organizations receive excessive condolence money above a certain level, they return it or donate it outright in light of potential legal issues." Some also say, "Isn't it excessive for law enforcement to even take issue with money for family events?"