Korea Expressway Corp. acting CEO Kim Il-hwan, third from left, and other witnesses take an oath before attending a National Assembly audit of the land ministry, Oct. 7.

By Lee Kyung-min

Retired officials of Korea Expressway Corp. (KEC) received more than 4.8 billion won ($3.3 million) in dividends from expressway rest stop operators over the past five years, according to a ruling party lawmaker, Sunday, fueling criticism that the land ministry-supervised state-run organization prioritized employees' gains at the expense of taxpayers.

This scandal follows the sudden resignation of KEC CEO Kim Jin-sook late last month, brought on by intensifying scrutiny due to discord with the land ministry over lowering food prices at rest stops.

The KEC rejected the ministry's suggestion to lower food prices by 10 percent, mostly by reducing the commission fee of 41 percent paid to the KEC and operators of rest areas by vendors.

The lowered prices will, the KEC said, result in poor performance evaluations in the finance ministry's annual review and a sharp reduction in employee benefits and bonuses.

"It is simply disgraceful," said Rep. Yoo Gyeong-joon of the ruling People Power Party, citing data submitted from the KEC. He is on the National Assembly Land, Infrastructure, and Transport Committee.

The dividend amount was 800 million won in 2021, down from 880 million won in 2020, 1.03 billion won in 2019, 1.05 billion won in 2018 and 1.08 billion won in 2017.

"The retired officials have grossed hefty dividends from profits made by the KEC affiliates required to pay a certain amount of commission every year. It is such an easy way to make money," he said.

The issue of KEC mismanagement was discussed briefly during a National Assembly audit of the land ministry, Oct. 7.

Rep. Maeng Sung-kyu of the main opposition Democratic Party of Korea said the KEC nets 2,000 won for every 10,000 won of food sales.

"A 10,000 won pork cutlet sold at highway rest areas means incomes of 4,100 won for stop area operators and 2,000 won for the KEC. How can we expect quality food when these cost structures are in place?"

KEC acting CEO Kim Il-hwan said in response that whether this practice will continue will be determined in the latter half of next year.