According to the audit results, the Pyeongchang Olympics Organizing Committee had set its budget plans with an assumption that it would be able to earn 17.5 billion won and 67.5 billion won in 2013 and 2014 each from sponsorship incomes.
SEOUL, Dec. 23 (Korea Bizwire) – Audit results revealed that the 2018 Pyeongchang Winter Olympics Organizing Committee and the Winter Paralympics Organizing Committee haven’t been able to enlist a sufficient number of sponsors and relied instead heavily on the government’s loans. The Board of Audit and Inspection said this on December 22 based on audits on the organizing committees and other state-run enterprises such as the Busan Port Authority.
According to the audit results, the Pyeongchang Olympics Organizing Committee had set its budget plans with an assumption that it would be able to earn 17.5 billion won and 67.5 billion won in 2013 and 2014 each from sponsorship incomes. In reality, however, it didn’t earn a penny in 2013 and only 3.5 billion won (5.2% of expected income) in 2014. Instead, the organizing committee borrowed heavily, including 11.0 billion won in 2013 and 10.5 billion won in 2014. For three and a half years from 2011 to the end of June in 2014, it has borrowed 18.7 billion won more than its expected borrowing volume.
Under these pathetic budget conditions, the auditors found, the organizing committee hired two foreign consultants for more than two years between June 2012 and December 2014 to perform overseas public relations services at the cost of 300 million won. The consultants’ contracts were renewed without any tangible results and a due review process.
By Lina Jang (linajang@koreabizwire.com)
