By Yi Whan-woo
A group of professors from Korea University (KU) alleged Friday that Kim Jae-ho, chairman of the school’s board, misappropriated some 22.7 billion won ($20.6 million) of donations.
The misuse of funds donated to universities has emerged as a significant social concern. In April, the education ministry fired the president and five board members at Sookmyung Women’s University after it found they had misused donations.
The ministry said it will launch a probe into the allegations raised by KU professors.
The professors held an emergency meeting Thursday to discuss the matter and other irregularities committed by board members.
In the case of Sookmyung, the school’s board received donations through its bank account, not the one opened under the name of the school, and transferred the money to the school later to make it look as if it came from the board.
The reason for the transfer was to get more subsidies from the government as it has encouraged foundations to invest more in their schools. Kim exploited a similar situation, according to the Korea University professors.
“The only difference was that Kim put donations directly into the accounts of the school’s foundation, and we’ll see how the ministry will handle this case,” a professor said.
Kim is also suspected of investing 9 billion won in the Dong-A Ilbo, one of the country’s major newspapers that he chairs. Of the total investment, he allegedly put 2 billion won into a cable channel operated by the newspaper, which began service in December, 2011. He also approved using 6.84 billion won for a new building.
The professors said they have formed an investigation committee to look into the case.
“Many of us deem that he is not suitable to carry out his role as chairman of the school foundation,” a professor said. “It seems the foundation exploits the school as if it is a subsidiary company of the Dong-A Ilbo.”