Fresh evidence has surfaced, exposing the elaborate scheme of a South Korean civil servant who embezzled 497.16 million Korean won (equivalent to $342,000) in public funds.
The extent of the embezzlement was revealed in a Board of Audit and Inspection report released on March 11, highlighting the misuse of funds that were essential for disaster recovery efforts.
The stolen money, intended in part for critical flood recovery donations, was diverted for personal cryptocurrency investments. The civil servant’s embezzlement spanned six years, from November 2018 to May 2023.
In December, the unnamed civil servant—”Person A”—was sentenced to five years for embezzling the city budget and public organization funds. The case is currently under review in the High Court, where the ruling may be upheld, extended, or overturned.
According to a Yonhap News report, the Cheongju official used forged documents and the mayor’s seal to open a fraudulent bank account in the city hall’s name. The official intercepted public funds from this account, diverting them into cryptocurrency investments and paying off personal debts. Notably, much of the stolen money was sourced from flood recovery donations needed after the severe flooding in North Chungcheong Province in July 2023.
The incident intensified scrutiny of public office transparency in South Korea following controversies involving public officials and cryptocurrency-related misconduct. Notably, former Democratic Party member Kim Nam-guk was recently cleared of charges after being accused of moving crypto earnings off the books, raising further concerns about accountability within the government.
Amid growing public outrage, authorities are taking steps to crack down on digital asset-related crimes. The Seoul Southern District Prosecutors’ Office has launched a dedicated Joint Investigation Unit (JIU) to combat cryptocurrency-related offences. The newly established unit, known as The Joint Investigation Unit for Virtual Asset Crimes, comprises 35 full-time specialists, including prosecutors and financial regulators from the Financial Services Commission and other relevant bodies.
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