Election Commission Refers Yeosu Mayor Seo Young-hak to Prosecutors Over Alleged Interest-Free Political Fund Loan

The Yeosu Election Commission has referred Yeosu Mayor Seo Young-hak to prosecutors on suspicion of borrowing money interest-free to cover his expenses in the June 3 local elections, a violation of the Political Funds Act. The case has been transferred to the South Jeolla Provincial Police Agency, and the authenticity of supporting documents provided by the mayor's side—including the promissory note and repayment records—will be verified in the forthcoming police investigation.

Mayor Seo is reported to have explained during the commission's inquiry that the arrangement was an ordinary debt between acquaintances. He argued that the promissory note and records of principal and interest repayments demonstrate that the loan was not interest-free.

"I borrowed about 100 million won from a friend and used part of it for campaign expenses," Seo said. "I reported the expenditures exactly as they were, and I never exceeded the statutory campaign spending limit." He added, "We agreed on 5 percent annual interest, and in August I repaid 70 million won of the principal plus about 2 million won in interest. For the remaining 30 million won, we agreed to repay the principal and interest in monthly automatic transfers over two years."