Misuse of 15 Billion Won Without Approval? Questions Raised Over NEC Budget Management

The National Election Commission (NEC) is currently dominating headlines as it faces intense scrutiny over its poor election management, which was highlighted by the ballot paper shortage during the June 3 local elections. Public anger over the infringement of voting rights is mounting, and the commission’s long-standing lax work practices are being subjected to sharp criticism. There is growing analysis that the NEC’s solid status as an independent constitutional body may have prevented necessary oversight and checks, leading to the current situation.

[Yoon Sang-hyun / Chairman of the Special Committee on the Ballot Paper Shortage: The independence of the National Election Commission, guaranteed by the Constitution, is meant to ensure accountability to the people, not to grant immunity after infringing upon their right to vote.]

The SBS reporting team has uncovered issues regarding the NEC's budget management. The NEC typically drafts its budget for the following year around August and receives funding after parliamentary review. Naturally, taxpayer-funded budgets should be used for their intended purposes; however, it has been revealed that the NEC has been transferring and diverting funds for various reasons.

1. Over 30 Billion Won in Transferred Funds?
SBS obtained data on the status of budget transfers and diversions by the National Election Commission over the past three years through the office of Representative Kim Gi-hyeon of the People Power Party. A year-by-year breakdown shows 3.67 billion won across 4 cases in 2023, 24.1 billion won across 154 cases in 2024, and 2.63 billion won across 97 cases in 2025. In total, this amounts to approximately 30.5 billion won across 255 cases. Looking at the figures, the scale and frequency of budget transfers in 2024 are significantly higher. In April of that year, the country held the National Assembly election, the largest of its kind. While it may be necessary to transfer funds if they are urgently needed for purposes other than those originally planned, our reporting team raised concerns because the frequency and scale suggest this is far from an exceptional situation. Further investigation revealed that the majority of these budget transfers and diversions were due to labor costs.

2. 83% of Diverted Funds Used for Labor Costs Despite Being Labeled Essential?
Over the past three years, 212 cases of budget transfers by the NEC, accounting for 83% of the total or 7.3 billion won, were identified as being used to cover labor costs. Specifically, funds originally allocated for essential election preparation—such as election management and supply management, commissioned election management, election broadcast debates, political party office support, election information and record management, international exchange projects, and the ODA project for spreading the Korean election system abroad—were used for labor costs. These were budgets secured under the premise that they were essential for specific projects. In December 2024, 2.3 billion won originally allocated for National Assembly election management was even used to cover internal labor costs. The diversion of funds for labor costs peaked in 2024, reaching 5.9 billion won. When asked why so much of the budget was transferred, especially for labor costs, the NEC responded that it was due to a high number of employees returning from leave at the end of the year.

3. Due to a High Number of Employees Returning from Leave at the End of the Year?
The high number of NEC employees taking leave ahead of elections is a recurring issue pointed out by the National Assembly every year. According to 2024 data on NEC employees on leave obtained by SBS, the number of employees on leave rose to 176 around April, when the general election was held. The number then decreased to 119 by the end of August and 114 by the end of September, before rising slightly to 127 by the end of December. This pattern of employees taking leave as elections approach and quietly returning afterward is why critics label it as moral hazard that hinders election management. As the number of returning employees increased by 40 to 50, the scale of year-end labor costs, including annual leave compensation and performance bonuses, grew, leading to the transfer and diversion of budgets to cover these expenses.

[Kim Gi-hyeon / People Power Party Representative: Since the budget is funded by taxpayers' money, it should be used in accordance with the purposes reviewed by the National Assembly. However, the unchecked NEC has been managing it as if it were their own pocket money.]

We also heard the NEC's explanation. They acknowledged that there was a shortage in civil servant compensation in 2024 and 2025. However, they explained that 2024 had unique circumstances, noting that a manual counting process was introduced during the general election vote count. As a result, they had to hire additional counting staff and rent extra equipment, which forced them to use the originally allocated labor budget first. They stated that as the number of returning employees increased later, they diverted budgets from other categories to cover labor costs. They added that they also considered the possibility that if they requested too much for labor costs, it might not pass the National Assembly's review process.

4. Unapproved Budget Usage?
Suspicions have also been raised that the NEC violated relevant laws while transferring budgets. Under the National Finance Act, budget transfers and diversions require approval from the Ministry of Economy and Finance. The NEC received approval from the ministry for 219 cases amounting to 15.3 billion won, which is about half of the total 30.5 billion won. This means the rest was diverted internally without approval. When asked about this, the NEC stated that based on Article 46, Paragraph 2 of the relevant law, the internal transfers fell within the exceptional scope delegated by the Ministry of Economy and Finance. The NEC has been applying the "2026 Guidelines for Budget and Fund Management Execution" published by the ministry. According to these regulations, while internal diversion of labor costs is possible, items such as regular wages, annual leave compensation, and other staff remuneration require consultation with the ministry. The NEC claims it did not violate these regulations. However, given that the amount of internal transfers and diversions reached approximately 15 billion won, it seems difficult for the NEC to avoid criticism that it should have minimized the application of these exceptions, even if it did not technically violate the law. Some have criticized the practice as a "trick" and "careless use of taxpayer money," suggesting that the NEC needs to re-examine its work practices in this area.

5. Heated Discussions on Constitutional Amendment
The National Assembly's Special Committee on the 국정조사 (Parliamentary Investigation) held its first meeting on the 23rd to address and examine these issues. Both ruling and opposition parties voiced strong criticism regarding the NEC's poor reporting, management system, bloated management, and internal indiscipline that triggered the ballot paper shortage. There is much talk about the need for "structural reform at the level of dismantling." The special committee decided to form an "expert preliminary investigation team" to prepare comprehensive reform measures. Furthermore, while the NEC responded that a "one-point constitutional amendment" could be considered if necessary, Representative Yoon Sang-hyun of the People Power Party, who chairs the special committee, expressed a difference in opinion regarding constitutional amendment, suggesting instead that they "create a neutral standing audit committee within the NEC and establish a system to report to the National Assembly." The second meeting of the special committee and the agency report are scheduled for July 1.

Reported by Son Hyung-an | Produced by Shin Hee-sook | Video by Choi Ho-jun | Video Editing by Hong Jin-young | Graphics by Lee Soo-min | Produced by SBS Digital News
※ Please note: This article was translated by AI and may contain errors.