It has been confirmed that an employee of Public Home Shopping, a public institution under the Ministry of SMEs and Startups, was disciplined on suspicion of collusion with its partner company, "New World Trading." Police investigating the case are looking into Chairman Kim Byung-hyung of New World Trading and other related figures on suspicion of providing money and valuables.
New World Trading is a meat processing company that buys beef and manufactures products such as galbitang and bulgogi for sale via home shopping and other channels. In the 2023 and 2024 National Assembly audits, it was criticized for selling dairy cow (yuu·乳牛) bulgogi as first-grade Hanwoo.
According to materials obtained by ChosunBiz through the office of Kang Seung-kyu of the People Power Party, a member of the Trade. Industry Energy. SMEs. and Startups Committee of the National Assembly, on the 14th, Public Home Shopping employee A, who is suspected of collusion with New World Trading, received a three-month pay cut for giving false statements during the audit and violating a pledge not to leak audit details. (Related article: [Exclusive] Collusion suspicions with "dairy cow bulgogi" New World Trading… Public Home Shopping launches employee audit)
In accordance with regulations, Public Home Shopping paid 50% of employee A's base salary for three months and then reduced it to 30% thereafter. Employee A also received employee welfare commonly provided to staff, including 1.5 million won in welfare points and commemorative gifts.
Last year, employee A attended racing events in Okayama, Japan, and Shanghai, China, as staff for the racing team "Volgas Motorsport," sponsored by Chairman Kim Byung-hyung of New World Trading.
This led to suspicions that employee A colluded with New World Trading. Volgas Motorsport also featured CEO Kim Jae-hyun, who is listed as the representative of New World Trading, as a driver. Last year, Chairman Kim sparked controversy by hurling vulgar insults at multiple Public Home Shopping employees. (Related article: [Exclusive] "You f—er" New World Trading chairman, a "super sub-contractor," repeatedly hurled verbal abuse at Public Home Shopping employees)
The period when employee A attended the racing events was around the time Public Home Shopping received severe disciplinary action from the Ministry of SMEs and Startups over issues such as quality problems with New World Trading's supplied products and Chairman Kim's assault on employees. Employee A was the PD in charge of New World Trading's broadcast products, and New World Trading had requested that A be assigned as the responsible PD.
Public Home Shopping launched an audit in Oct. last year after receiving a tip about collusion between employee A and New World Trading. Initially, A said they attended a racing event held in Japan, but during the audit it was uncovered that A also attended the China event. A was asked to submit supporting documents to verify suspicions of receiving money and valuables for airfare and lodging, but did not submit materials proving personal payment.
In the end, Public Home Shopping imposed a three-month pay cut for false statements and leaking audit details, and did not confirm the suspicions of receiving money and valuables. However, A is said to have stated in a meeting with management this year to the effect that "it is true that during overseas travel with New World Trading officials, New World Trading covered my travel expense in my stead."
Public Home Shopping reported the matter to police. Because it could not confirm the suspicions of receiving money and valuables at the audit stage, it requested an investigation based on the Improper Solicitation and Graft Act.
Under the law, Public Home Shopping employees cannot receive or request money and valuables from parties related to their duties. Regardless of whether there is quid pro quo, receiving over 1 million won at one time or over 3 million won annually is subject to punishment. The Seoul Mapo Police Station, which is investigating the case, conducted seven witness interviews with Public Home Shopping, the complainant.
Police are reportedly considering sending Chairman Kim's side to prosecutors this month on charges of providing money and valuables. Chairman Kim's side submitted a written opinion to police saying "there was no intent."
Kang Seung-kyu said, "Even though they confessed that a partner company paid for overseas travel expenses, they are effectively neglecting the matter under the pretext of a police investigation," adding, "Public Home Shopping must be reborn to carry out its original mission of supporting market access for small business owners."