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Query will hand over findings on 90 schools to prosecution
The speculation of widespread corruption at private schools in South Korea has, in most cases, been confirmed by an ongoing investigation by the Board of Audit and Inspection (BAI). The board released data June 22 on 124 private schools it had probed, finding that more than 70 percent, or some 90 schools, embezzled tuition fees, took illegal cuts in connection with school-related construction projects, and received bribes for hiring and selling school assets, among other accusations. Of the total 250 illicit activities found by the board, some cases resembled the corporate malfeasance that has plagued South Korea’s large conglomerates, with back-door dealings such as slush funds and accounting irregularities.The founder of a university in Jeolla Province, identified by his surname, Lee, took tuition fees worth 6.5 billion won (6.7 million USD) last year by making deals on a construction project that was not actually executed, the board said. In another instance, a construction company owned by relatives of Lee was accused of evading taxes worth 15 billion won (17 million USD) through tax writeoffs with the help of the university. A female owner of a university in North Gyeongsang Province was criticized for raising 4.5 billion won in slush funds by deflating accounting records for dormitory fees. She used the money for private purposes, the board said, sharing it with her husband, the university’s president, and her son, the university’s chief planning officer. A total of 11 school founders and officials were accused of embezzling their school’s funds, the BAI said. The owner of a private school in Seoul was found by the board to have pocketed 1.9 billion won in profits by selling his own land to his school without notifying educational authorities about the deal. Another school foundation took 235 million won in return for ordering a construction project. Another stereotypical method of corruption at private schools is taking bribes in exchange for hiring teachers or granting admission to students. A teacher at a high school outside Seoul received 20 million won from a parent in return for granting admission to a child, the BAI said. Two local universities were also accused of illicitly hiring employees with ties to the owners of the schools, the board said. The BAI decided to extend its probe until late September on suspicion that many top-ranked high schools and arts magnet middle and high schools have taken bribes from parents in exchange for granting admission to students. The BAI plans to ask prosecutors mid-month to investigate a total of 48 school officials who stand accused by the BAI following the probe. The amount directly embezzled at 22 private schools alone was worth 23.1 billion won, the BAI said. Amounts pilfered from tuition fees and school assets at all schools accused stood at 44.3 billion won and 12.2 billion won, respectively, the board said.
