The Chaebol Returns To The Presidency 1967 [EN]: Chapter 149

149. Anti-Corruption Starts with Public Interest Reporting

Major Ryu said,

“During the audits, private contractors handled all the labor and materials. But in previous constructions without audits, the engineer corps and unit members were mobilized to build barracks, and only the beds were purchased and installed. The labor and material costs were all embezzled by the military.”

“So, in reality, only the cost of the beds was incurred?”

“That’s correct.”

“Even if the soldiers replaced the private labor, weren’t the costs for materials like blocks and cement still incurred?”

“Those were taken from the engineer corps’ military supplies, which were already budgeted for in the defense budget. Everyone is an accomplice.”

“Good heavens! Double billing, then.”

“Yes, that’s right.”

“And there are irregularities in the weapons modernization program?”

Major Ryu made several additional revelations.

“The K11 composite rifle project is a complete sham. They put forward a fancy justification, calling it a game-changer that would alter the infantry’s combat paradigm, but they’ve wasted 30 billion won [approximately $25 million USD] copying a few foreign rifles for five years without any research results. They’re still hiding the fact that it’s under development.”

“30 billion won!”

“It’s problematic that the people’s tax money is being wasted, but the bigger issue is the significant disruption to our defense capabilities.”

“That’s a serious tip. It’s not an easy decision to report this as a soldier, so thank you for your courage.”

“I am simply being loyal to the country as a soldier.”

The audit committee member was impressed by his courage to report, but also worried.

In a military organization where top-down command is the rule, internal whistleblowing could be seen as a kind of insubordination.

The Board of Audit and Inspection investigated and confirmed the barracks modernization corruption and the K11 corruption, and then reported it to the prosecution.

*

Presidential Office.

The President summoned the Minister of National Defense and, showing him the newspaper articles about military procurement corruption and defense industry corruption, raged.

“Minister, don’t you know that defense industry corruption is tantamount to treason?”

“I am sorry, Your Excellency!”

“This isn’t a mistake by one or two people, but an organized crime conspired by the unit’s command. That’s what makes it even more serious.”

“I have no excuse, Your Excellency.”

“This is smearing my face! What is lacking that you’re committing such organized corruption?”

“……”

“Tell me! I don’t understand at all.”

The Minister of National Defense, who had been hesitating, opened his mouth.

“Well, I’m saying this because I believe Your Excellency, as a former soldier, will understand to some extent.”

“……”

At the words ‘former soldier,’ the President was speechless.

Because he was a regressor, he was only nominally a former soldier; his entire military life consisted of being a private, with *byeongjang* [sergeant] being his final rank.

“Hmm, I have some idea, so speak frankly.”

“Among civil servants, career soldiers receive the lowest salaries.”

“……”

“The reality is that even after working for 10 years as a low-ranking officer, their salary is less than that of a high school graduate. Once they are assigned, they have to move around like locusts, from the front lines to the rear, making it difficult to maintain a family. It’s only maintained because the country provides housing, clothing, and food, but even generals find it difficult to afford a house in Seoul with just their salary.”

“……”

In the early 1970s, military pay was terrible.

“Others say they’ll receive a pension for a long time later, but it’s only enough for living expenses, and it’s difficult to even cover the monthly rent without finding a job. So, ordinary soldiers are desperate to get even a penny more from welfare expenses, military supplies, and the defense industry.”

“So, you’re saying it’s a crime of survival?”

“I hope you will broadly understand that reality, Your Excellency.”

“While you’re at it, why are you leaving out the promotion kickbacks? Isn’t that what they’re trying to raise money for?”

There were rumors of kickbacks circulating whenever a colonel got a star [promotion to general] or a star was added [promotion to a higher general rank].

The Minister’s face turned red.

“I, I am sorry.”

During Chairman Wang’s era, when military-related construction was done, more than 30% of the construction cost flowed to high-ranking military officials.

They would either make a private contract with an agreement to give a certain amount of rebate, or it was a rigged bid.

So, when you asked why soldiers needed so much money, ten out of ten were raising money for promotion kickbacks.

“An army that measures loyalty with kickbacks can’t possibly have high combat power, can it?”

“……”

“Stop with the pathetic excuses and come up with a military reform plan. If you can’t resolve it yourself, you’ll have to take off your uniform.”

“……”

*

The President was listening to the opinion of the Minister of Economy and Finance.

“Your Excellency, it is possible to double the salaries of career soldiers in stages over three years. But doubling the salaries of 600,000 ordinary soldiers is impossible.”

“Can’t we squeeze the budget?”

“If personnel costs increase, we have no choice but to reduce the weapons budget.”

“We can’t reduce weapons now that our territory has increased.”

“Then we have no choice but to drastically increase the defense budget. Then there will be controversy in the National Assembly, and military buildup will be revealed to foreign countries.”

“We should hide the defense budget as much as possible.”

“So, it’s contradictory.”

“Hmm, then how about this?”

“Please tell me.”

“We create a military weapons specialized corporation with the National Wealth Fund. All employees of the corporation are filled with civilian researchers, and all development and testing are completed by the corporation. The Ministry of National Defense only puts out planning proposals, that’s the defense industry structure.”

“Ah! You intend to completely separate the Ministry of National Defense and the defense projects, leaving no room for soldiers to interfere.”

“That’s right. Procurement is also led by the Government Procurement Service, not the Ministry of National Defense, and the Ministry of National Defense only conducts test operations and acceptance. Since the corporation is made up of civilian professional researchers, efficiency is maximized, and there is no room for military kickbacks to intervene.”

“I think it’s very efficient. We can also hide the defense budget for weapons development.”

“And if it’s a corporation, the top brass of the Ministry of National Defense will definitely be eager to parachute in [secure cushy post-retirement jobs] after retirement. If that happens, defense weapons lobbying will be rampant. To prevent this in advance, all executives and researchers of the corporation must have professional qualifications of a doctorate or higher, and current and reserve officers will be restricted.”

“I think that’s a very appropriate measure. I think it’s efficient to separate soldiers from budget, research, and administration.”

*

The President called the Minister of National Defense.

The Minister of National Defense brought a defense reform plan that he had prepared.

The President, who had already seen the Minister’s draft, said.

“Minister, your plan is just squeezing a dry rag one more time [getting minimal results from an exhausted resource].”

“That’s ultimately the case.”

“It doesn’t make sense to tell someone who stole because they were hungry to endure by drinking water.”

“……”

“Now, I’ll make a proposal, so listen carefully.”

The President explained the plan he had devised with the Minister of Economy and Finance.

The Minister of National Defense, who was listening intently while taking notes, had a determined look in his eyes.

“Your Excellency, that’s a really great plan. If it works out this way, we’ll be able to focus on our inherent national defense.”

“Instead of raising salaries to the level of ordinary office workers, if you commit military procurement, kickbacks, promotion, or defense industry corruption, it’s one strike and you’re out, regardless of rank.”

“Of course, that’s how it should be.”

“Use this opportunity to completely overturn the outdated practices. Exclude seniority and connections, and promote based on true combat power and multifaceted evaluation of expertise.”

“I understand, Your Excellency!”

“Now, I will name this defense reform the Strong Army Project. I hope you will complete it.”

“I understand, Your Excellency! Strong Army!”

The Minister saluted sharply.

The three-year Strong Army Project passed the National Assembly, and a private military research institute was established.

The institute’s genius talents, receiving huge salaries and incentives, began to create cutting-edge weapons.

It was the beginning of K-Defense [Korean Defense Industry].

But laws alone were not enough to be reborn as a strong army.

*

Board of Audit and Inspection Headquarters.

Those who passed the first theoretical exam in the Board of Audit and Inspection’s special recruitment were undergoing the second oral exam, followed by the third interview.

It was a position to select Board of Audit and Inspection employees to audit the military, as directed by the President.

The President of the Board of Audit and Inspection also attended as an interviewer for the final interview.

But the face of the examinee with the neat hair looked familiar.

The President of the Board of Audit and Inspection looked at the name tag and was convinced.

“Oh? Major Ryu!”

“You recognize me.”

It was Major Ryu, who had previously exposed defense corruption.

The President of the Board of Audit and Inspection was very curious as to why he was here.

“You should be getting a star [promotion to general] in the military, but you’re taking a recruitment exam. Has your values changed?”

“Something happened.”

“I’m asking as an interviewer. Tell me if it’s an appropriate motive for public office. What happened?”

“After I exposed the corruption to the Board of Audit and Inspection, I ranked last in the multifaceted evaluation within the military. I’m in a position where I can’t hope for a star.”

“Last place? Did a righteous person like Major Ryu do something terribly wrong in the military?”

*

The President received a call from the President of the Board of Audit and Inspection.

– Your Excellency, do you remember Major Ryu, who exposed defense corruption in the past?

“Ah, that man! That righteous man became the catalyst for the Strong Army Project. I’m thinking of giving him a medal, even if it’s late.”

– I think the medal is late, Your Excellency.

“Late? Did something happen to Major Ryu?”

– Major Ryu appeared at this Board of Audit and Inspection special recruitment site, and I was very surprised.

“Recruitment? You mean he took the new employee exam?”

– Yes. It seems that the ostracism within the military was extreme after the exposure. He used to be in the top grade in the multifaceted evaluation, but after the exposure, he was in last place and was assigned to a remote island. Moreover, he received transfer orders every two months.

“Good heavens! He deserves a medal, but instead, he’s being ostracized and virtually fired! This is terribly wrong. Oh, no~ I’m worried that the Strong Army Project will be all for naught.”

– Your Excellency, I don’t know if this is an appropriate thing to say, but please don’t be discouraged. I don’t think it’s just a military problem.

“I don’t understand. Please explain.”

– The problem is the social image of internal whistleblowers. They are usually pointed at as despicable villains like traitors and informants. Such stereotypes are deeply rooted not only in the military but also in social organizations in general. A person like Major Ryu would have suffered the same disadvantages in other organizations, not just the military.

“Hmm, I get what you mean now. It’s more deeply rooted than I thought. We need to come up with a fundamental solution.”

– That’s right. Corruption rots from the inside, so when it’s exposed on the outside, it’s already festered. Internal whistleblowers play a role in preventing it before it bursts. Protection for internal whistleblowers is needed.

*

The President called his senior secretaries and gave them a task.

“If an internal whistleblower reports, we can prevent the festering from bursting. But in our society, internal whistleblowers have the image of informants and traitors, like Major Ryu’s case. In the promotion evaluation, the multifaceted evaluation has become a poison that is ostracized by the majority. Please find a way and a system to treat them as social heroes who defy the organization and expose corruption for the sake of greater justice, and to change their image.”

“I understand.”

“I’ll put my salary for this month as a prize for the winner.”

“Yes, Your Excellency!”

Incentives make even whales dance.

*

Some time later, Jangwon [the top scorer] returned to the Senior Secretary for Social and Culture Affairs.

The Senior Secretary for Social and Culture Affairs prepared charts at the State Council meeting and explained the contents of the contest.

“The catchphrase is ‘Anti-Corruption and Integrity Start with Public Interest Reporting.’ We have been calling them internal whistleblowers, but because of the negative image of informants and traitors, we have changed it to ‘Public Interest Reporters.’”

The attending ministers nodded.