Gyeonggi audit finds Uijeongbu City violated ordinances by mixing light rail funds with general budget

Uijeongbu City in Gyeonggi Province has been found to have violated local ordinances by commingling funds related to its light rail project with its general operating budget, according to an audit by Gyeonggi Province. The issue centers on how the city handled approximately 200 billion won received from a new private operator after the original operator of the Uijeongbu Light Rail went bankrupt in 2017 due to accumulated deficits from failed ridership forecasts.

The Gyeonggi Provincial Audit Committee's findings, announced on July 30, revealed that the city improperly managed funds from the new operator, including 200 billion won received in 2019 and subsequent court deposit funds. Instead of using a dedicated special account for the light rail project as stipulated by the "Uijeongbu City Light Rail Project Special Account Establishment and Operation Ordinance," these funds were processed through the city's general accounting. The audit committee concluded this was a violation but issued only a "caution" to the city without imposing penalties on responsible parties or financial sanctions.

However, the audit did not address the core concerns raised by citizens who initiated the audit. They questioned why the city had to pay out an estimated 172.1 billion won to the new operator after the original company's bankruptcy and whether the residual value of the facilities was accurately calculated. The audit committee excluded these financial aspects, citing that they had already been settled through civil litigation, with the Supreme Court finalizing related rulings in 2024.

Despite the audit confirming no significant irregularities in the payment and settlement process post-judgment, it failed to evaluate the appropriateness of the payout itself. This leaves unanswered questions for residents about the substantial financial burden placed upon them. In response, the citizen audit group plans to secure further audit and settlement documents to investigate potential omissions or overpayments and will consider legal action. They are also exploring long-term solutions with the city and seeking collaborative approaches among the city, its council, and civil society.

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We are considering a lawsuit and will also discuss long-term processing plans with the city administratively.