Editor's Pick: Taxpayer Money Paid in Advance, But Vehicles Remain in China: Risk of Financial Loss

The three-section articulated vehicle that the city of Daejeon is pushing to introduce.

Of the three vehicles ordered, only one has arrived in Daejeon so far.

The remaining two have finished production but remain at a factory in China.

This is because Company A, the import agency responsible for bringing the vehicles into the country and delivering them to the city of Daejeon, is effectively on the verge of bankruptcy.

This is the latest consolidated audit report of Company A obtained by our reporting team.

The accounting firm issued a "disclaimer of opinion," citing severe financial distress and uncertainty.

Company A recorded an operating loss of 63.9 billion won last year alone, falling into a state of complete capital impairment.

The problem is that 7.3 billion won in taxpayer money from Daejeon citizens was paid in advance.

There are growing concerns that if the company's bankruptcy becomes a reality, the tax money could simply vanish.

This is not the first time a controversy has arisen over delays in the delivery of publicly ordered vehicles.

During the so-called "Dawonsys incident," a company that received advance payments from railway-related organizations faced controversy after indefinitely delaying the delivery of hundreds of electric trains.

At the time, President Lee Jae-myung strongly criticized the issue of excessive advance payments during a Ministry of Land, Infrastructure and Transport briefing.

The city of Daejeon and the Daejeon Transportation Corporation went even further by paying an 80% advance, and concerns are mounting because, unlike Dawonsys, which manufactured vehicles domestically, Company A is merely an import agency.

In response, Company A explained that the delivery schedule is being delayed due to the slow domestic certification process, regardless of the company's financial situation.

With 7.3 billion won of taxpayer money already paid as an advance, the city of Daejeon's response is now being put to the test.

(Video reporting: Kim Sung-soo, TJB | Written by: Yoon Sung-sik | Produced by SBS Digital News)

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