Seoul:Corporate donations tied to audit witness exemptions threaten the integrity of parliamentary oversight and must end. Lawmakers have reportedly pressured major corporations to contribute to the Agricultural and Fishing Villages Collaborative Cooperation Fund during annual National Assembly audits, wielding their authority to summon executives as witnesses.
According to Yonhap News Agency, there are allegations that lawmakers traded exemptions from questioning for financial contributions, exposing a disturbing practice of turning parliamentary oversight into a fund-raising business. Minutes from the Assembly's Agriculture, Food, Rural Affairs, Oceans and Fisheries Committee describe how lawmakers have resorted to "begging," "threats" and "intimidation" to secure contributions each year. Hanwha Group and Posco reportedly avoided having their executives summoned only after promising payments to the fund ahead of October's audit.
The fund, established in 2017 after the Korea-China FTA was implemented in December 2015, aimed to raise 1 trillion won (US$747.6 million) over 10 years to compensate farmers and fishermen harmed by the agreement. By June this year, it had collected 320.7 billion won, including 150.7 billion won from private companies. Contributions were intended to be voluntary, particularly from companies benefiting from the FTA, but parliamentary pressure has made them resemble a quasi tax. Lawmakers have even pressed domestically oriented businesses with no connection to the agreement to contribute.
The committee is now seeking to add a provision stating that companies "should endeavor to contribute to the fund every year," effectively turning voluntary donations into an obligation. This proposed legislation has been described as a measure designed to pressure businesses. Farmers and fishermen who suffer losses from FTAs deserve assistance, but lawmakers are urged to first allocate public funds to compensate those affected accurately.
Industry Minister Kim Jung-kwan, who recently visited China, reflected on the business environment in a Facebook post, questioning the support provided to companies expected to innovate and invest globally. Instead of enabling businesses to compete, the National Assembly is being accused of holding them back. Lawmakers are called upon to urgently reform their conduct and restore the integrity of parliamentary oversight. Additionally, stricter scrutiny of the fund is demanded to ensure contributions serve affected rural communities rather than becoming discretionary money for lawmakers seeking favors for their constituencies.