A general view of the Korea AeroSpace Administration in Sacheon./Courtesy of Sacheon City

The Korea AeroSpace Administration (KASA) notified the Korea Aerospace Research Institute (KARI), an agency under the Korea AeroSpace Administration, of an institutional caution, saying it failed to make sufficient efforts to cut the budget by holding board meetings at external hotels even though it had enough internal meeting space. However, some say it is excessive to place the blame solely on KARI, as the Korea AeroSpace Administration has in effect been involved in the operation of the board.

According to the results of a special audit of KARI released by the Korea AeroSpace Administration (KASA) on the 17th, KARI used external hotels for board meetings throughout last year even though it had secured conference rooms and space to hold them. The special audit was conducted from Nov. to Dec. last year to review various allegations related to KARI raised during the National Assembly's audit of state affairs last year.

The audit found that KARI held a total of nine board meetings at external hotels last year, spending 42,672,750 won in the process.

The Korea AeroSpace Administration (KASA) particularly took issue with the fact that even board meetings held in Daejeon, where KARI is located, used external hotels. It judged that choosing an external venue despite the ability to use in-house facilities amounted to unnecessary budget expenditure.

On the ground, however, there is considerable reaction that the Korea AeroSpace Administration (KASA)'s audit criticism is one-sided. Given the structure of the board, the Korea AeroSpace Administration can influence the schedule and overall operation, yet it is ultimately holding only the subordinate agency responsible. In fact, the Korea AeroSpace Administration's Director General serves as an ex officio director on the board.

The audit also flagged the issue of moving expense support for the official residence of KARI President Lee Sang-cheol. The Korea AeroSpace Administration (KASA) judged that approving related documents and receiving expense support immediately after taking office, despite no legal basis for moving expense support, could constitute a violation of the Conflict of Interest Prevention Act and other laws.

KARI responded that the head of the institution approved the related documents three days after assuming the post and therefore did not fully recognize in advance whether there was a legal conflict, and that support for moving expenses was in fact a smaller expense compared with the purchase and rental fees for furnishings for the official residence. However, the Korea AeroSpace Administration (KASA) emphasized that, separate from whether the budget is reduced, compliance with the law takes precedence.

Meanwhile, the special audit ultimately resulted only in warnings for three people, with no separate disciplinary action taken.

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