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Busan Metropolitan City Audit Committee Announces Results of Special Audit on Busan Cultural Center

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Busan Metropolitan City’s Audit Committee (Chairperson: Yoon Hee-yeon; hereinafter “Audit Committee”) announced today (July 16) the results of the special audit conducted on the Busan Cultural Center earlier this year.

This audit was conducted in response to a request from the City Council, targeting personnel recruitment, basic duty compliance, and contract/accounting practices of the Busan Cultural Center (including the City Performing Arts Group), and assessing the propriety of institutional operations. Additionally, the audit broadly evaluated the effectiveness of the city’s supervisory system for its affiliated public institutions.

The Audit Committee identified 44 cases of improper conduct, and recommended 75 personnel actions including disciplinary measures and institutional warnings, as well as financial restitution totaling approximately 9 million KRW.

Key findings include: during the vacancy of the CEO position, a person without proper authority conducted personnel promotions, leading to a demand for disciplinary actions and corrective measures. Violations also included non-compliance with working hours by members of the performing arts group and inappropriate payment of business travel expenses. Some members were found to have used sick leave for overseas travel.

The Audit Committee recommended disciplinary actions for those involved with the Busan Cultural Center and the City Performing Arts Group, and issued an institutional warning to the Cultural Center for negligent management of performing arts members. Warnings or personnel actions were advised for those who did not adhere to working hours, and a total of 9,339,000 KRW in improperly paid travel expenses is to be recovered.

Additionally, the City Performing Arts Group was found to have paid allowances to members without legal basis in local ordinances, and violated performance participation regulations by excessively spending on external performance expenses. These constituted misappropriation of budgetary funds.

As a result, the Audit Committee issued an institutional warning to the CEO of the Busan Cultural Center for poor management and operations of the City Performing Arts Group. The Committee also instructed the organization to revise related regulations and implement rational improvements.

Moreover, the Audit Committee emphasized the need to strengthen the management system for affiliated organizations under Busan Metropolitan City, and to establish effective oversight and evaluation mechanisms.

The Committee proposed improvements to the “Ordinance on the Operation of Affiliated Institutions of Busan Metropolitan City” and revisions to “Management Evaluation Indicators.” It also presented reorganization plans for each institution’s internal audit functions and duty management systems.

Mayor Park Heong-joon stated, “The role of the Cultural Center is vital for enhancing and expanding access to cultural and artistic experiences in Busan. Any shortcomings in public accountability or trust must be addressed.” He added, “Affiliated organizations, including the Cultural Center, should prioritize service enhancement for local residents, and work to rationalize management and ensure transparent operations.”

Meanwhile, the special audit began in January and, following a preliminary review meeting in early April, the initial findings were finalized. The final results were approved by the deliberative committee on April 18 and subsequently communicated to the audited institution.

Although the Busan Cultural Center filed for reconsideration of certain findings, all objections were dismissed by the Audit Committee, and the final audit results were confirmed on July 15.