Gyeonggi Province Says Nanumeui Chip Used Only 200 Million Won of 8.8 Billion Won Raised Over 5 Years for Facility Operations

[Suwon Ilbo=Reporter Park No-hoon] Gyeonggi Province announced on the 11th that Nanumeui Chip, a social welfare corporation under the Korean Buddhist Jogye Order that houses former Japanese military comfort women, has raised tens of billions of won in donations but instead of using the funds directly for the grandmothers, spent the money on land purchases or accumulated it for building construction.

Song Ki-chun, co-chair of the Nanumeui Chip joint public-private investigation team, held a press conference at the Gyeonggi Provincial Government Building and announced the investigation results of Nanumeui Chip.

Co-chair Song said, "As a result of the joint public-private investigation, Nanumeui Chip promoted donations for 'the grandmothers' living, welfare, and testimony activities' through its homepage and other means from 2015 to 2019, and sent donation request letters to several institutions, raising approximately 8.8 billion won in donations over the past five years." He added, "In this process, the Nanumeui Chip corporation and facility did not register for fundraising under the Donation and Fundraising Act. As a result, the amount of donations and their usage details were not properly disclosed, and they did not undergo regulatory inspections by the registering agency."
Under the current "Act on the Collection and Use of Donations and Fundraising," those who wish to collect donations of 10 million won or more must register with the registering agency (the Ministry of Public Administration and Security if exceeding 1 billion won).
Money donated by the public was deposited into the operating corporation's account rather than the Nanumeui Chip facility account. Of the approximately 8.8 billion won in donations raised this way, the amount sent to the Nanumeui Chip nursing facility where the grandmothers actually reside (facility transfer funds) was 2.3%, or approximately 200 million won. Most of these facility transfer funds were also spent as indirect expenses for facility operations rather than direct expenses for the grandmothers.

Meanwhile, the operating corporation used approximately 2.6 billion won of donations for asset formation expenses. Asset formation expenses were used for land purchases, living quarters expansion construction, construction of memorial museums and memorial halls, and creation of memorial parks.
According to the joint public-private investigation team, reviewing the board meeting minutes and budgets, the remaining donations appear to have been held in reserve for the International Peace and Human Rights Center and nursing home construction.

There were also improper conduct in the board decision-making process. Although Nanumeui Chip had a recusal system for directors under its articles of incorporation, a director candidate participated in the director appointment procedure and voted to appoint himself as director.
In a November 2019 board meeting, three outside directors participated in voting on their own appointment, and despite the meeting not reaching quorum with these directors excluded, the meeting proceeded.

The joint public-private investigation team stated that it also discovered signs of emotional abuse toward the grandmothers during the investigation. Caregivers engaged in verbal abuse, saying "Grandma, I'll throw you out" and "You need to be beaten," particularly directed at severely ill grandmothers who could not communicate or move independently. The investigation team determined that the caregiver's abusive conduct was not merely an individual deviation but could stem from medical gaps and excessive workload resulting from Nanumeui Chip's operational issues.

Additionally, records containing the grandmothers' living conditions and struggle history were left unattended. Lists of admissions and discharges were not properly maintained, and the grandmothers' paintings, photographs, and citizens' support letters were placed in burlap sacks or plastic bags and left on building verandas. Some of these materials were designated as state-designated records. Original documents on display in the First History Hall were deteriorating due to lack of humidity control, and the Second History Hall had defective flooring construction with the floor buckling upward, raising safety concerns.

Additionally, a caregiver employed by the corporation illegally recorded conversations between the investigation team and a grandmother, and the facility director arranged for a grandmother to meet outside with the former facility director and former general secretary who were investigation subjects.
Gyeonggi Province will subsequently receive the final investigation results from the joint public-private investigation team, conduct detailed review, request a police investigation, and impose administrative sanctions for violations of the Social Welfare Business Act and related laws.

Co-chair Song acknowledged the contributions made to society, stating, "Nanumeui Chip started with the efforts and dedication of the Buddhist community for the peaceful living of former comfort women grandmothers who initially received no attention." He also added, "The grandmothers who were victims lived together at this place, shared historical pain, healed, and testified to historical truth to the world."
However, he stated, "As problems gradually emerged in the corporation and facility operations, a public-private cooperation council including citizens and experts with significant interest in this issue needs to be formed to address these problems." He proposed, "The public-private cooperation council should closely consult on 'comfortable final years for the grandmothers' and 'records and preservation of comfort women history,' develop normalization measures, and Gyeonggi Province and Gwangju City should make efforts to ensure these normalization measures are well implemented."

Meanwhile, the Nanumeui Chip joint public-private investigation team divided its investigation into four sections covering administration and facility operations, accounting, human rights, and historical value from July 6 to 22, investigating the social welfare corporation Korean Buddhist Jogye Order Nanumeui Chip (corporation), the elderly residential facility Nanumeui Chip (facility), the Japanese Military Comfort Women History Hall, and the International Peace and Human Rights Center.

The joint public-private investigation team consisted of co-chairs Song Ki-chun, professor at Jeonbuk National University Law School; Jo Young-sun, attorney (former secretary-general of the National Human Rights Commission of Korea); Jung Hee-si, Gyeonggi Province Assembly member; and Lee Byung-woo, director of the Gyeonggi Province Welfare Bureau, along with civil servants from Gyeonggi Province and Gwangju City and private experts.