[Anchor]

Allegations have emerged that an association hosting a Hanbok model selection contest required participants to use a specific Hanbok shop and received kickbacks from that shop in return. According to our coverage, it was confirmed that the kickbacks were deposited into the bank account of a corporation operated by the association president's younger sister.

Reporter Kwon Min-kyu has the details.

[Reporter]

This is footage from the Korea Hanbok Model Contest, which has drawn hundreds of participants every year since 2016.

Promoted as an effort to spread Hanbok culture worldwide, participants are introduced as receiving special benefits, such as official invitations to overseas Hanbok events.

[Jung / Association President of the Organizing Side: Providing various benefits, such as overseas fashion shows and domestic fashion shows, about 30 times a year...]

However, complaints regarding various irregularities surrounding this contest have been filed with the police and the National Tax Service.

The accusation points to an illegal rebate structure in which the association hosting the contest allegedly forced participants to rent clothes only from a designated Hanbok shop, and that shop returned a portion of the rental fees.

According to KakaoTalk chat logs secured by SBS, every time regional preliminaries and finals concluded, the organizers demanded the Hanbok shop "deposit 40 percent of the Hanbok rental fees."

SBS's investigation confirmed that the rebate amounts were deposited into the account of a non-profit corporation registered with the Ministry of Culture, Sports and Tourism, which is run by the younger sister of the association president.

[Hanbok Shop Owner (Operating a Designated Shop): They tell us to submit a list of everyone who came to the store and rented clothes. They total that up and tell us to wire the money right away...]

Controversy over family-run management has also surfaced, as Jung's younger sister, who heads the non-profit corporation, directly operated one of the designated Hanbok rental shops.

[Hanbok Shop Owner (Operating a Designated Shop): It's a family business. It makes you realize they are doing this for their own profit rather than for cultural development...]

Claims were also raised that if participants rented from a Hanbok shop other than the designated ones, the association made them change into complimentary Hanbok provided by the association, which were allegedly of extremely poor quality.

[Contest Participant: There is a huge difference. You have no choice but to wear the paid Hanbok. (The free Hanbok) looked frayed and worn out, like something you would just pick out at a flea market...]

The police have booked Jung on charges of breach of trust and launched an investigation.

Meeting with the SBS reporting team, Jung stated, "It was a customary practice for shop owners to voluntarily contribute money to be used as the association's activity expenses," adding, "We will improve what needs to be corrected and cooperate with the investigative agency's probe."

(Video filming: Yang Hyun-chul and Yoon Hyung, Video editing: Lee Sang-min, Design: Park Tae-young)