Election Fraud Alert: How a TV Ad Company Inflated Costs by 100% During the Presidential Election

The Central Election Commission announced on the 10th that it has reported the head of an advertising agency to prosecutors for falsifying receipts and inflating TV ad production costs by nearly double during the 21st presidential election.

The agency’s representative, identified as Mr. A, is accused of creating fraudulent receipts that exaggerated the actual production cost of three political party TV ads from approximately 196 million KRW (147,000 USD) to around 390 million KRW (292,500 USD) during last year’s election.

Allegedly, Mr. A attempted to profit by exploiting the government’s reimbursement system for election expenses. This misconduct was uncovered during the Commission’s review of election expense reimbursement claims.

Under the Political Fund Act, individuals who falsify, forge, or alter receipts or other documentation related to election expenses can face up to two years in prison or a fine of up to 4 million KRW (3,000 USD).

A spokesperson for the Central Election Commission stated, “This behavior not only severely undermines the purpose of the publicly funded election system but also constitutes a serious violation that leads to losses for the national treasury.”

The spokesperson added, “We will continue to crack down on false claims for election expense reimbursements. In the upcoming 9th nationwide local elections, we will thoroughly review and verify political fund accounting reports and reimbursement claims to prevent any misuse of taxpayers’ money.”