Gyeongbuk City Official Accused of Embezzling $1.9 Million in Public Funds for Virtual Asset Investment

Yeongcheon City in Gyeongbuk Province is facing a significant scandal after a Grade 7 civil servant was found to have embezzled approximately 2.5 billion won (about $1.9 million USD) in public funds. The city confirmed the embezzlement on July 21 and has since filed a report with the police to initiate an investigation.

The suspect, identified only as 'A', reportedly worked in accounting at an administrative welfare center within the city. Authorities allege that 'A' systematically siphoned public funds into personal bank accounts between November 24, 2023, and June 6, 2024. The embezzled funds are believed to have been invested in virtual assets, such as cryptocurrencies.

The scheme came to light during a routine accounting audit that began earlier this month. Yeongcheon City officials stated that they are committed to recovering the misappropriated funds and taking appropriate disciplinary action against all involved parties, including those who failed in their supervisory duties. The city also plans to conduct a comprehensive audit across all departments, including town and township offices, to prevent similar incidents from recurring.

In a press conference on July 20, Yeongcheon Mayor Kim Byung-sam issued a public apology. "We will not dismiss this incident as merely the misconduct of a single official or negligence in duties," Kim stated. "We will hold the responsible individuals, including the official involved and those who neglected their management and supervision, strictly accountable. We will pour all our efforts into fundamental innovation."

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We will not dismiss this incident as merely the misconduct of a single official or negligence in duties. We will hold the responsible individuals, including the official involved and those who neglected their management and supervision, strictly accountable. We will pour all our efforts into fundamental innovation.