Investigative Reporting

"First, there are some documents I'd like you to gather from the small business owners, President Chu."

At Yun-hyeok's words, Association President Chu Hyeok-su recalled a rumor he had heard a while back.

Specifically, the rumor that this young man, Lee Yun-hyeok, had managed to get the low-resolution security cameras at Raymi Castle replaced in a truly spectacular fashion.

"I heard you went through eight thousand pages of documents all by yourself at Raymi Castle," Chu Hyeok-su said.

"Are you planning to do something similar this time?"

"Yes. But this time, it's not a negotiation; we are reclaiming your legally rightful dues. However, I'm neither the mayor nor a city councilman right now. There's a limit to how much data I can obtain on my own."

"What do you need?"

"To start, a list of the businesses in the association that didn't receive the subsidies, and..."

Before he could even finish, the crowd behind them erupted.

"Me!"

"I didn't get it!"

"Brothers General Store!"

"Gwangmyeong Seafood!"

"Happy Rice Cake Shop!"

At that, the association president waved his hands and bellowed, "Hey, quiet down, all of you!"

A vein throbbed on the president's forehead.

Once the crowd quieted down, Chu Hyeok-su turned back to Yun-hyeok. "So, tell me again exactly what documents you need."

"It's quite a lot. The list of businesses that didn't receive the subsidy, their business registration certificates, business licenses, proof of business income for the last three years, lease agreements for their commercial spaces, and utility bill payment histories. That's all."

There was no legal issue with an individual collecting and reviewing these documents. However, due to personal information protection laws, there was no way to obtain them unless the business owners requested them directly.

That was why he needed the association's help.

"Since there's a vast amount of paperwork, it will take some time and effort. But if you can gather the data, I will review every single page without exception—"

"I'll give it to you!" someone shouted from the back.

"I already have them at my shop! I'll bring them right over!"

"I have them too!"

"We're in a real hurry, President Chu!"

"Please help us!"

The atmosphere laid bare just how desperately cornered these people were.

The recession is so severe, they must be struggling terribly.

It was bound to be even worse because this was a traditional market.

The younger generation rarely shopped at traditional markets. Furthermore, single-person households—who neither married nor had children—were rapidly increasing among the youth.

Had anyone ever seen a single youth in their twenties or thirties go to a traditional market after work, buy groceries, and cook a meal from scratch?

They were few and far between.

Not only did they rarely cook, but even when they did, they usually ordered meal kits online.

Consequently, while Mir City's overall population was growing due to the influx of young professionals from nearby Pangyo, the actual consumer base of this market was steadily shrinking.

"Everyone, calm down!" the president roared again.

There was something amusing about how the rowdy merchants fell silent every time a shout erupted from beneath the butcher's robust chest.

The association president's authority was absolute.

"If you all just throw your papers at him haphazardly like this, we'll end up with duplicates and mass confusion! He won't be able to do his job!"

The president patted Yun-hyeok on the shoulder and said,

"I'll contact every single business owner registered with our association today to request the documents. Once you have them ready, bring them to me! I'll compile everything and hand it over to him."

The president waved his hands dismissively at the merchants. "Does that sound good? Now, disperse!"

After sending the merchants away, Chu Hyeok-su looked at Yun-hyeok, who was still standing there, and asked, "Is there anything else you need?"

"I also need the list of businesses that did receive the subsidies."

"The ones who received them? Not the ones who didn't?"

"Yes. Actually, this is more urgent."

"Hmm. It certainly is a lot. Alright, I'll compile the data as quickly as possible."

"Thank you. In that case..." Yun-hyeok said, "I'll take six hundred grams of pork belly, please."

Chu Hyeok-su chuckled and sliced the meat. "That'll be twelve thousand won."

Generally, after a period of internal review, information disclosure requests are either fully or partially granted, provided there are no specific grounds for refusal.

By the time the city hall approved the viewing of the requested documents, Chu Hyeok-su's data from the Small Business Association had also arrived.

"There's quite a lot of paperwork here," Chu Hyeok-su said as he carried in several boxes from his car's back seat and trunk, one after another. He looked at Yun-hyeok and asked, "Can you really go through all of this by yourself?"

"If I want to be a politician, this is exactly the kind of thing I need to ‍‍‌‌⁠​​⁠‌​​‍​​‍​‌​⁠‍‌‍⁠⁠‌⁠‌‍‌‍‌‌‌‍⁠​‌​‌​‌‍‌‌‌⁠‍​​‌‍⁠‌‌⁠⁠be good at."

"And here I thought a politician's specialty was running around drinking and acting slick."

"Once this is all over, let's share a victory drink."

"Sounds like a plan."

The number of documents Yun-hyeok had to review now reached into the tens of thousands.

While it was several times more than what he had faced at Raymi Castle, he didn't actually need to read every single page meticulously.

The key was to uncover the statistical discrepancy between the sample group and the population.

The number of small business owners registered in Chu Hyeok-su's association was approximately 3,400. This represented about 5% of the total small business owners in Mir City.

Statistically, this was a sample size that allowed for an analysis within a 95% confidence level and a margin of error of plus or minus 5%.

Furthermore:

1. The industry distribution of all small businesses in Mir City (Wholesale/Retail 27%, Food Service 22%, Services 30%, Manufacturing 10%, Others 11%) was identical to the industry distribution within Chu Hyeok-su's sample group.

2. The geographical distribution of Chu Hyeok-su's association members was also similar to that of the general population. Fifteen percent were located in Gwangmyeong-dong, where small businesses were heavily concentrated, with the rest evenly distributed across other areas within the margin of error.

3. According to the small business status survey conducted directly by the city hall in the second half of last year, the three stages of closure risk (Mild, At Risk, Severe) stood at 18%, 8%, and 5% of the total small businesses, respectively. Chu Hyeok-su's association showed the exact same proportions.

Could Chu Hyeok-su's association function as a representative sample of the entire small business population? Yes, it could.

Now, here was a quiz.

Out of all small businesses in Mir City, the total ‍‍‌‌⁠​​⁠‌​​‍​​‍​‌​⁠‍‌‍⁠⁠‌⁠‌‍‌‍‌‌‌‍⁠​‌​‌​‌‍‌‌‌⁠‍​​‌‍⁠‌‌⁠⁠amount received by the 13,000-odd subsidy recipients is 50.3 billion KRW. In that case, what should be the total amount received by the 670 recipients within Chu Hyeok-su's association?

If the sample truly reflected the population, they should have received around 2.6 billion KRW. Surprisingly, however, the actual amount received by the sample group was only about 1.8 billion KRW. Since the margin of error was around ±200 million KRW, this was a massive deviation.

Let's calculate it in reverse. If 670 people received 1.8 billion KRW, how much should 13,000 people have received?

"35 billion KRW."

That was the amount that should have been spent. Yet, 50.3 billion KRW had been disbursed.

"There is a discrepancy of 15.3 billion KRW."

This process reconfirmed the exact point of suspicion that reporter Ju Hye-yeong had raised. Next was tracking where that money went.

On the subsidy disbursement status table categorized by date, the names of the regions were displayed instead of the business names. There was clear evidence that 15.3 billion KRW had been paid out to Durim-myeon in a single day.

Since Durim-myeon was an industrial district lined with factories of various sizes, it wouldn't normally seem out of place for such funds to flow there. However, executing such a massive disbursement in a single day was highly suspicious.

What did this mean? It meant the money hadn't been distributed to thousands of self-employed shopkeepers, but rather to a "few select corporations."

How could small business subsidies be given to corporations? Hard as it was to believe, those corporations could still legally qualify as small businesses.

The legal definition of a "small business" was surprisingly broad. While people typically imagined struggling, small-scale merchants like local fried chicken shop owners, a CEO of a company with fewer than ten full-time employees and 12 billion KRW in annual revenue—who drove a Ferrari on a 3 billion KRW annual profit—could still be classified as a "small business owner" under the law.

However, if they operated as corporations, tax processing was mandatory. This meant that if one pulled the tax records of the corporations in Durim-myeon and looked into their internal audit reports, the subsidy disbursement details would be clearly visible.

Just like this.

If he had to dig through every single hidden corporate factory in Durim-myeon, it would have taken an eternity. But Yun-hyeok already knew the answers, allowing him to conduct a highly targeted investigation.

When you added up the money pocketed by these three, it came out to exactly 15.3 billion KRW.

The explosive was complete. Now, it was ‍‍‌‌⁠​​⁠‌​​‍​​‍​‌​⁠‍‌‍⁠⁠‌⁠‌‍‌‍‌‌‌‍⁠​‌​‌​‌‍‌‌‌⁠‍​​‌‍⁠‌‌⁠⁠time to craft the detonator.

First, he tracked down the names of the company representatives using the business registrations and corporate registries of the three companies.

First: the wife of Mir City Mayor Baek Hyeong-guk.

Second: the younger brother of City Council Chairman Lee Chae-hyeong.

Third: the son of Choi Hui-jae, the leader of the Small Business Subsidy TF Team within Mir City Hall.

Next, he reviewed public asset disclosures of public officials and cross-referenced them with social media, alumni associations, and local online communities.

He gathered photos, such as one showing a celebratory banner for the opening of "Mirae Transport."

He also checked old articles from the Mir Shinmun.

As the work progressed, empty coffee cups began to pile up on Yun-hyeok's desk.

Just like when he was restructuring Mir City's transportation system, his life became a repetitive cycle of desk and bed.

And just like when he had worked late into the night to rescue runaway youth through outreach programs, he frequently worked until dawn.

He even pulled an all-nighter. After three days of intense labor, it was finished.

This should do.

The mathematical deduction that roughly 15.3 billion KRW had vanished during the execution of the 50.3 billion KRW budget, the actual whereabouts of that money, and the corrupt ties between Baek Hyeong-guk and the embezzlers who took it.

The bomb was primed. Time to flip the switch.

Yun-hyeok pulled out his phone. He was going to make some calls. First to Association President Chu Hyeok-su, and then to reporters from various media outlets.

He called Ju Hye-yeong, the reporter from the Mir Shinmun, first. "I'd like to hold a press conference."

The more dramatic the political performance, the better.

Durim-myeon, Mir City.

It was once a thriving industrial complex during the manufacturing boom, but it had since fallen into decay. A press conference was being held in front of an abandoned factory complex in this very district.

Who on earth held a press conference in a place like this?

Ju Hye-yeong, the reporter for the Mir Shinmun, was half-skeptical even as she made her way to the site.

Yet, on the other hand, she couldn't help but feel a sense of anticipation, given the incredible administrative analysis and execution Lee Yun-hyeok had recently demonstrated.

And when she actually arrived, she found that he had prepared surprisingly well. He had set up temporary plastic chairs and even set up a monitor.

A television, seemingly brought from home, was set up and connected to a high-capacity portable battery. That battery, in truth, was one Yun-hyeok's father used when he went fishing.

Ju Hye-yeong looked around to see how many other reporters had shown up. Unfortunately, there weren't many from the major broadcasting networks.

Although Lee Yun-hyeok had made quite a name for himself, he was still ultimately just an aspiring politician.

At least KBC is here.

There were five reporters in total. Standing before the massive camera equipment brought by the major media outlets, Ju Hye-yeong felt a bit small, but she didn't let it show.

As she walked toward the temporary chairs, Ju Hye-yeong noticed another unusual sight. Is that the president of the Small Business Association?

Chu Hyeok-su was indeed there, along with dozens of small business owners who appeared to be association executives. Their grim expressions bordered on outright fury.

"Thank you all for gathering here today," Lee Yun-hyeok began, turning on the monitor to start his major announcement.

"Today, I am here to expose a case of embezzlement that took place within Mir City Hall."

The clutter in Ju Hye-yeong's mind cleared instantly. This was, without a doubt, a massive scoop.

"The perpetrators of this embezzlement are Mir City Mayor Baek Hyeong-guk, City Council Chairman Lee Chae-hyeong, and Grade 5 Team Leader Choi Hui-jae, who oversees the Small Business Subsidy TF Team within Mir City Hall."

It was clear that the reporters from the major networks were thinking the exact same thing as Ju Hye-yeong. I was debating whether to come, but I'm glad I did. This is front-page material.

Click! Click! Camera shutters began to snap rapidly from all directions.

The well-analyzed statistical data shattered the secretive gates of Mir City Hall, which had previously rejected Ju Hye-yeong's information disclosure requests.

His presentation was not mere speculation; it was a thorough piece of investigative reporting that analyzed everything from causal relationships to the tricks used in the execution process.

"The method they used to embezzle the funds lies within Mir City Hall's 'Selection Criteria for Small Business Support Recipients.'"

Yun-hyeok displayed the documents obtained through the information disclosure request.

"At first glance, these criteria seem reasonable, but they are not. In reality, the legal definition of a small business can include companies with annual revenues of up to ten billion won."

By that logic, a company like Mirae Transport—whose average revenue over the preceding three years reached a whopping 6 billion KRW—is classified as a small business. And their recorded revenue for last year was exactly "100,000 KRW."

In other words, they earned 9 billion KRW in each of the first two years, and then earned a mere 100,000 KRW in the final year.

No matter how bad a business got, experiencing such an absurd ‍‍‌‌⁠​​⁠‌​​‍​​‍​‌​⁠‍‌‍⁠⁠‌⁠‌‍‌‍‌‌‌‍⁠​‌​‌​‌‍‌‌‌⁠‍​​‌‍⁠‌‌⁠⁠drop was practically impossible, yet that was exactly how it was written on paper.

And because the subsidy was calculated based on the amount of revenue reduction and profit margins, Mirae Transport received 6 billion KRW in subsidies through this paperwork manipulation.

"And that very Mirae Transport is right here in front of you." Yun-hyeok pointed to the abandoned factory behind him.

"Unbelievable..." A collective sigh escaped from the reporters. Whispers of So that's why he held the press conference here seemed to ripple through the crowd.

Meanwhile, fury erupted among the association executives. "Those bastards." "What a load of absolute bullshit."

The abandoned factory looked as though it had been neglected for at least twenty years. Naturally, there were no office chairs, desks, or computers inside; the building's metal frame was rusted, and the empty lot was overgrown with weeds and littered with wild rat droppings.

"And over there!" Yun-hyeok stretched out his hand, pointing to a small pond about thirty meters away from the abandoned factory.

"It may look like a mere pond to you, but that is the official headquarters of Shining Jewelry, the small business that received 5.2 billion KRW in government subsidies."