It has been found that Guri City suffered damages amounting to over 1.7 billion won after receiving insurance certificates issued by unlicensed financial companies.
On the 5th, the Board of Audit and Inspection disclosed the audit results regarding the management status of 'local government property' in the capital region.
According to the Board of Audit and Inspection, in 2021, Guri City entered into a lend agreement with Company A for Guri Distribution Comprehensive Market stores. Company A applied for partitioning payment of the lend fee in 2023, and Guri City required a performance guarantee insurance certificate according to current law.
In this process, Company A requested Seoul Guarantee Insurance to issue the insurance certificate, but Seoul Guarantee Insurance refused to issue it considering Company A's financial situation.
Consequently, Company A submitted a performance guarantee insurance certificate with a guarantee amount of over 2 billion won issued by Company B.
However, Company B was an unlicensed entity that had not received authorization from the Financial Services Commission for the guarantee insurance business.
Afterward, Company A failed to pay the stipulated lend fee. Accordingly, Guri City filed an insurance claim lawsuit against Company B and won. Company B was unable to pay, and Guri City became unable to recover 1.74 billion won.
The Board of Audit and Inspection requested disciplinary action against three employees who received the insurance certificates issued by the unlicensed company. It also requested an investigation by the prosecution against Company B for violations of the insurance business law.
A representative from the Board of Audit and Inspection noted, 'The employees of Guri City were aware that Seoul Guarantee Insurance could not issue the insurance certificate due to Company A's financial situation, but they did not verify whether Company B was a legitimate guarantor capable of issuing the insurance certificate.'
In addition, it was investigated that Gimpo City purchased a cultural facility site for 19.9 billion won after undergoing an internal investment review without establishing a basic plan in 2021 and has left it vacant for a long time.
Siheung City misvalued industrial facility land in the free economic zone, selling it to foreign investment companies at prices lower by at least 800 million won to up to 1.8 billion won.
The Board of Audit and Inspection indicated that every year, the shared property status investigation conducted by local governments nationwide reveals that between 3.5 trillion and 5.8 trillion won worth of local government property is omitted from the local government property registry, and notified the Ministry of Interior and Safety that it is necessary to establish measures to prevent omissions, including improving the management system.