2026.10.15. The Fair Economy — At the Seoul Metropolitan Government audit on the 15th, allegations were raised that a senior Seoul Housing & Urban Development Corporation (SH) official may have received kickbacks in the process of selecting a Hangang Bus shipbuilder. The ruling and opposition parties clashed over delays in requesting an investigation and the destruction of documents.
Lawmakers from the ruling Democratic Party of Korea raised suspicions that Seoul Mayor Oh Se-hun received related reports but did not request an investigation. Mayor Oh said, "We are conducting an internal audit and will request an investigation if necessary."
Democratic Party lawmaker Park Ju-min said suspicious fund flows involving a broker were detected in the project funds of Gadeok Heavy Industries, the shipbuilder for the Hangang Bus. He claimed that an internal investigation finding — that it was highly likely an SH official had received part of the funds as a kickback — was reported to Mayor Oh. He added that the criminal referral was never carried out, and related documents, including the referral document itself, were destroyed, saying, "This could become an administrative version of a truth-burying case."
Lawmaker Kim Yeong-bae said Mayor Oh received two in-person briefings, yet an order was issued to destroy the documents, and demanded that the officials involved appear before the committee. Lawmaker Park Jeong-hyeon remarked pointedly, "Won't citizens see the mayor as being at the very top of the kickback chain?"
According to the Seoul Metropolitan Government, the city's Audit Committee reported the Hangang Bus kickback allegations to Mayor Oh on September 9 last year. The report at the time included a statement that had been obtained indicating that part of the money suspected of being misused from the shipbuilder's expenditures had been paid as contract-winning commissions to reporters and local notables.
The city's Audit Committee drafted an investigation referral letter but determined it was difficult to refer the case based on the circumstances secured, recommending a public interest audit petition to the Board of Audit and Inspection (BAI). Seoul filed a public interest audit petition with the BAI on October 2 last year regarding the entire Hangang Bus project, but the BAI dismissed it, stating it was an issue that could be handled by its own audit body.
The city's Audit Committee launched an investigation into the kickback allegations after the results of a separate audit of the Hangang Bus project, requested by the National Assembly's Public Administration and Security Committee, were released on March 16. The Audit Committee is currently conducting a thorough investigation into the matter. City officials said they would refer the case to police if necessary, depending on the investigation's findings.
Mayor Oh explained, "I received the report around September last year and ordered a thorough investigation, to the point of having a referral document drafted. We first pursued an audit request with the BAI to ensure an objective audit, but it was dismissed, and the Audit Committee has since been conducting a meticulous investigation." He added, "It would be problematic to treat something that has not yet been confirmed as established fact."
People Power Party lawmaker Kwon Yeong-jin said, "If allegations that an SH official may have received 1.5 billion won are expanded into allegations of bribery against Mayor Oh, the public could be misled," and called for restraint in raising exaggerated allegations. Lawmaker Seo Myeong-ok pointed out, "It is probably no coincidence that the article came out on the day of the National Assembly audit."
The construction of the Hangang Bus vessels was awarded to Gadeok Heavy Industries through a negotiated contract without competitive bidding. On September 9 last year, the city's Audit Committee reported to Mayor Oh Se-hun that it had obtained a statement indicating that part of the money suspected of being misused from the company's expenditures had been paid as contract-winning commissions to reporters and local notables. Seoul subsequently filed a public interest audit request with the BAI on October 2 of the same year, including in the scope of the audit the process by which Gadeok Heavy Industries was selected through the negotiated contract, delays in vessel construction, cost increases, and the appropriateness of advance payments.
However, the BAI dismissed the public interest audit request filed by the Seoul Metropolitan Government over the Hangang Bus project. The BAI said, "Most of the matters raised correspond to city council inquiries and press reports, and can be handled directly by the city's own audit body," citing Articles 3 and 19 of the "Regulations on the Handling of Public Interest Audit Requests" as grounds.
Hangang Bus, a key campaign pledge of Seoul Mayor Oh Se-hun's eighth popularly elected term, began official operation on September 18 last year. Seoul pursued the project to utilize the Han River as a means of public transportation, tourism, and leisure. As of October, the average daily number of weekend passengers stands at 3,327, which is 2.2 times the weekday figure of 1,481.
As the top 10 days for passenger numbers were all concentrated on weekends and holidays, controversy has arisen over the service's effectiveness as a means of public transportation. Seoul is pursuing a plan to raise weekend and holiday fares from the current 3,000 won to between 5,000 and 10,000 won. The target implementation date is April next year.
About a year after the start of official operation, the Hangang Bus project surpassed 600,000 cumulative passengers. As of October, Seoul has invested more than 110 billion won in the Hangang Bus, adding 21.4 billion won to the 87.6 billion won loan already provided by SH. Ruling party lawmakers criticized this, saying, "This is using taxpayers' money to cover losses." Mayor Oh Se-hun countered, saying, "This is a project that requires heavy upfront investment," and "If this year's revenue grows more than twofold compared to last year, a turn to profitability is possible after three years."
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