Audit Office Issues Warning Over Local Governments Funding Union Office Rent

The Board of Audit and Inspection has confirmed that it has issued warnings to six local governments, including Gwangju Metropolitan City and Chungcheongbuk-do, for covering the office rental costs of the Korean Confederation of Trade Unions (민주노총) and the Korean Trade Union Confederation (한국노총) using public funds. This revelation came to light on January 5, 2025, following an examination of the 2023 budgets of 17 metropolitan governments across the country.

The audit found that these local governments had been paying for the rental fees of private office spaces used by the unions, rather than providing space in government-owned buildings. The total financial support from these six local governments amounted to approximately 2.557 billion KRW in deposits and around 593 million KRW in annual rent.

Specifically, Gwangju Metropolitan City has been supporting the Korean Confederation of Trade Unions with a deposit of 700 million KRW and an annual rent of 82.8 million KRW since 2003. Jeollanam-do has contributed 550.55 million KRW in deposits and 66 million KRW in annual rent since 2019.

Chungcheongbuk-do has provided 200 million KRW in deposits and 135.2 million KRW in annual rent (including management fees) since 2018, while Chungcheongnam-do has supported two offices of the Korean Confederation of Trade Unions with a total deposit of 106 million KRW and an annual rent of 52.1 million KRW since 2004. Additionally, Jeju-do has been providing 187 million KRW annually without a deposit since 2016, and Gyeongsangbuk-do has supported the Korean Trade Union Confederation with a deposit of 1 billion KRW and an annual rent of 70 million KRW since 2021.

The Board of Audit and Inspection has instructed local governors to ensure that public funds are not misused to cover rental costs that should be borne by specific organizations, as this practice violates local finance laws. In response, Gwangju Metropolitan City and Jeollanam-do have defended their actions, stating that the rental support is necessary for enhancing cooperation among labor, management, and the government as stipulated in labor relations laws. However, the audit office has countered that supporting office rental fees for specific organizations cannot be justified as a project aimed at improving labor relations.