Exclusive: 20 Million Won in Bonuses for Executive Accused of Sexual Harassment Sparks Furor Over Seongdong-gu District Administration

According to Financial News, an executive at Seongdong Urban Management Corporation during the tenure of "Jung Won-oh’s Seongdong-gu District Administration" was found to have received performance bonuses totaling around 20 million won in two separate payments even after stepping down over sexual misconduct. The executive had previously worked on the election campaign team for Democratic Party of Korea (DPK) candidate for Seoul Metropolitan City Mayor Jung Won-oh when he ran for Seongdong District Mayor.
In 2024, a Seongdong District Council member from the People Power Party (PPP) even warned Jung directly, who was then the district mayor, saying to his face, "If you do not claw back the performance bonuses, I will file a criminal complaint." Nevertheless, the corporation still has not recovered the money, according to findings.
Based on reporting by Financial News on the 10th, executive director A at Seongdong Urban Management Corporation was referred to prosecutors in 2021 on charges of sexual harassment. A was confirmed to have remained in the post of executive director at the corporation until December 2022.
Despite this, the corporation paid A performance bonuses on two occasions in 2022 and 2023 totaling about 20 million won. A received a suspended indictment and therefore did not receive a prison sentence. On June 5, 2024, Seongdong District Council member Eom Kyung-seok raised his voice directly in front of then–Seongdong District Mayor Jung, saying, "When I asked how on earth this person was paid a performance bonus, I was told it was because the conviction was not yet final."
Under the budget guidelines for local public enterprises, executives in grade A organizations such as the corporation can receive performance bonuses ranging from 251% to 350% of their base salary. A is said to have been paid at the maximum rate of 350%. Eom criticized this, stating, "It is absurd that someone who caused a public uproar and resigned—a person who should never have received a performance bonus—was given the highest possible rate of 350%."
The same guidelines stipulate that individuals who resign or are convicted after causing public controversy through corruption, as well as those disciplined for offenses such as drunk driving or sexual assault, are excluded from eligibility for performance bonuses.
On this point as well, Eom argued, "Because he resigned after causing a public uproar, he should not have been given any performance bonus," adding, "You have wasted tens of millions of won in taxpayers’ money, so recover it immediately. If it is not recovered, I will file criminal complaints against the district head (Mayor Jung) and everyone responsible."
Even so, the performance bonuses paid to A have reportedly still not been clawed back. The rationale is that it is difficult to see a direct causal link between the public controversy and his resignation. Seongdong District Office told Financial News, "Based on advice from an attorney and a labor attorney, we concluded that the payment of performance-based compensation was appropriate and that there is no legal basis for recovery," adding, "We cannot expansively interpret 'a person whose conviction has been finalized' to include 'a person who received a suspended indictment.'"
Current and former local government officials commonly note that the corporation is inevitably influenced by the head of the local government. Under Seongdong District ordinances, the chair and executive director of the corporation are appointed by the district mayor from among candidates recommended by an executive recommendation committee. Pursuant to the Local Public Enterprises Act, of the seven members of this committee, two are recommended by the district mayor, three by the district council, and two by the corporation’s board of directors. Observers point out that if the district council is dominated by the mayor’s party, the mayor’s influence over appointments becomes particularly strong.
A also served as the office manager in the campaign team of Jung, then a preliminary candidate for Seongdong District Mayor, during the 2010 local elections. In 2015, he worked as chief of staff at the Seongdong B constituency district party committee. This has fueled criticism that his appointment as executive director of the corporation, and the payment of performance bonuses even after his resignation, amounted to "taking care of a close associate." One Seongdong District Council member pointed out, "The former executive who resigned is still working on the campaign team for the current Seongdong District mayoral candidate and continues to wield influence."
haeram@fnnews.com Lee Hae-ram and Kim Hyeong-gu Reporter