A member of the Korea Coast Guard (KCG) rappels from a helicopter toward a ferry in waters off the National Maritime Museum of Korea, in the port city of Busan, South Korea, 21 November 2025. The Korea Coast Guard conducted a disaster drill simulating a ferry fire and subsequent rescue operations. File. Photo by YONHAP / EPA
Jan. 22 (Asia Today) — South Korea’s Coast Guard did not execute 22.7 billion won ($17.5 million) in project funds by year-end 2025, according to data submitted to the National Assembly, raising questions over whether budget execution and fund allocation were properly managed.
The figures, obtained by opposition People Power Party lawmaker Kim Tae-ho, show the Coast Guard carried over 22.73431 billion won ($17.5 million) in project funds as of Dec. 31, 2025. The projects include spending tied to maintenance depot operations, vessel construction and establishment of Vessel Traffic Service centers.
More than 45 of 56 projects were classified as “contract period not yet expired,” the data showed. The Coast Guard has said payments could not be made because work was not completed. However, some observers said that under annual project structures that can include advance and progress payments, at least part of the funding could have been disbursed by the end of the year.
The Coast Guard rejected the “unpaid” characterization, saying the issue stems from contracts still being in effect rather than overdue payments. It also said the situation differs from cases involving the Defense Ministry where payments were reportedly not made even after completion and invoicing.
Still, the Coast Guard’s explanations appeared inconsistent. In a call with this publication, a Coast Guard spokesperson described a system that includes advance payments and interim payments with execution tied to project progress. The following day, the Coast Guard emphasized a typical “80% advance payment and 20% final payment” structure and said some contracts are paid in full after completion, without clearly addressing whether the 22.7 billion won figure reflected interim payments or final payments.
Asked whether the amount involved interim or final payments, a Coast Guard official said the agency would need to review individual projects, signaling further verification is required.
A political source said even official documents submitted to the National Assembly contain inconsistent descriptions of the execution structure and called for a parliamentary review of the Finance Ministry’s overall fund allocation and execution management.
— Reported by Asia Today; translated by UPI
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