[2026 National Audit] Heated Debate Over Illegal Subcontracting and Pension Losses

by BAEK DUSAN Posted : October 27, 2026, 16:48Updated : October 27, 2026, 16:48

During the comprehensive national audit held on October 27 by the Health and Welfare Committee of the 22nd National Assembly, issues arose simultaneously, including allegations of illegal subcontracting in research services related to the site selection of the National Dental Research Institute, suspicions of fund losses due to the delay in rebalancing the National Pension, and controversies over the refusal to submit data regarding the safety of the abortion pill Mifepristone. Lawmakers from both parties criticized the government's complacent response and strongly urged corrective measures and investigations.


At the audit, lawmakers from the ruling People Power Party (PPP) representing the Daegu and Gyeongbuk (TK) regions focused on allegations of preferential treatment and document forgery in the Ministry of Health's second research service for creating evaluation criteria for the National Dental Research Institute. They also pressured the government to release meeting minutes related to the alleged fund losses resulting from the National Pension Fund Management Committee's decision to delay stock sales (rebalancing). Additionally, voices calling for the establishment of a public medical school at Incheon University to address the serious medical neglect in the Incheon area were raised.


Intense Scrutiny Over Allegations of Illegal Subcontracting Related to the National Dental Research Institute


The audit began with a focus on the Ministry of Health's research service for site selection of the National Dental Research Institute.


PPP lawmaker Kim Gi-woong stated, "The Ministry of Health entered into a contract worth 40 million won with the Korea Health Promotion Institute, which has no prior experience in dental or site evaluation research, without obtaining prior estimates and inserted them after the fact, and the approval for the review was granted before the application was submitted," raising suspicions of document forgery and breach of trust.


Kim further pointed out that the Health Promotion Institute arbitrarily changed budget items and allocated 22 million won under 'other expenses,' which was unrelated to dentistry, to a single urban engineer, indicating illegal subcontracting, and called for a re-evaluation from scratch.


Fellow party member Lee Dal-hee also emphasized the abundant infrastructure in Daegu, stating, "Daegu is home to 43 dental-related companies, 12 national research institutes, and numerous students in related fields, making it a hub for the dental industry," criticizing the selection of a national institution's site based on illegal service results that altered criteria to favor a specific region, which wastes taxpayer money.


In response, Minister of Health Jeong Eun-kyeong stated, "There was no intention to favor a specific region, but we will thoroughly verify the alleged illegalities and procedural issues raised."


Allegations of Pension Fund Losses Due to Delay in Rebalancing... '180 Trillion Won Disappeared' vs 'Just a Timing Difference'


The allegations of losses resulting from the National Pension's decision to delay stock sales (rebalancing) were also a hot topic. Opposition lawmakers pointed out that significant evaluation losses occurred when the Fund Management Committee postponed rebalancing earlier this year and demanded the release of the meeting minutes documenting the decision-making process.


PPP lawmaker Kim Tae-ho stated, "The National Pension belongs to the people, yet the government is refusing to submit meeting minutes under the pretext of 'investment secrets,' engaging in a ping-pong game. If the decision was not politically motivated, the profit and loss analysis and meeting minutes related to the rebalancing delay should be released immediately."


PPP secretary Baek Jong-hun criticized the ruling party's opposition to calling witnesses, stating, "We requested the testimony of former policy chief Kim Yong-beom and the attendance of expert witnesses to confirm why the National Pension delayed sales, but the Democratic Party opposed all of it," questioning how sufficient verification could be claimed without key witness testimonies.


Minister Jeong responded, "It is merely a difference in market capitalization, and while it could affect profitability and stability, the meeting minutes must remain confidential."


Controversy Over Refusal to Submit Data on Mifepristone and Calls for Establishment of Incheon University Public Medical School


There was also criticism regarding the Ministry of Food and Drug Safety's refusal to submit and allow access to data related to the safety assessment of the abortion pill Mifepristone.


PPP lawmaker Han Ji-a stated, "Refusing to allow access to the initial risk management plan submitted by the pharmaceutical company and the reasons for the Ministry's supplementary requests under the guise of 'under review' is a trick," urging the prompt submission of data as it directly concerns the lives and safety of citizens.


Additionally, there were calls to establish a public medical school at Incheon University to address the essential medical service gaps in the region. Democratic Party lawmaker Kim Kyo-heung pointed out, "Despite being in the metropolitan area, Incheon has had the highest treatment-related mortality rate per 100,000 population for five consecutive years and is the only national university without a medical school."


Kim urged active consideration of a bill jointly proposed by 14 lawmakers from both parties to create a public medical school at Incheon National University and designate Incheon Medical Center as a training hospital to enhance public essential medical services.


Minister Jeong stated, "We will discuss overall public health reinforcement measures in consultation with Incheon City," but refrained from providing a direct answer regarding the establishment of a medical school.





* This article has been translated by AI.