The Democratic Party of Korea launched an emergency ethics investigation into Jeonbuk Special Self-Governing Province Governor Kim Gwan-young over allegations of distributing cash envelopes, then decided to expel him. Although Kim explained that "the money was returned the very next day," closed-circuit television footage capturing the scene of cash distribution was made public, and with clear evidence confirmed, the party imposed its highest level of disciplinary action. With Kim, who had been the frontrunner, now eliminated from the Jeonbuk gubernatorial primary, the race has been thrown into turmoil — Rep. Ahn Ho-young, who had been leaning toward not running, has urgently decided to join the contest.
Kang Jun-hyun, the Democratic Party's chief spokesperson, said in a briefing after an emergency Supreme Council meeting on the evening of July 1, "Circumstances of Governor Kim providing cash gifts were identified, and the Supreme Council members voted unanimously to expel him." He added, "We are deeply sorry to the public." Cho Seung-rae, the party's secretary-general, said, "We verified a related tip early in the morning and reported it to Chairman Jeong Cheong-rae," adding, "Through an ethics inspection team investigation and face-to-face and written questioning of Governor Kim, we determined it was a clear case of illegality." Chairman Jeong ordered the ethics inspection team to launch an emergency probe after learning of the allegations that morning.
In November last year, Kim met with 15 young people from the Jeonbuk region at a restaurant and provided each person between 20,000 won and 100,000 won under the pretext of chauffeur service fees. Kim said he distributed a total of 680,000 won ($490) and retrieved the money the following day, but the Democratic Party's own verification found the amount was larger. After news of the party's investigation broke, Kim met with reporters at the Jeonbuk provincial government office and said, "It is true that I distributed cash envelopes, but I felt uneasy about it so I ordered their retrieval, and the full amount was collected back the next day. I understand there is no problem whatsoever." He offered a similar explanation during the party's investigation, but it was not accepted. Under the Public Official Election Act, a criminal offense is considered to have been committed at the moment cash gifts are provided, meaning Kim could face punishment regardless of whether the money was subsequently returned.
Police have also launched an investigation. The Jeonbuk Provincial Police Agency's Anti-Corruption and Economic Crime Investigation Unit said it had received a formal complaint related to the allegations and is verifying the facts.
With corruption allegations erupting around Kim, who had been considered the strongest candidate, the primary landscape within the Democratic Party has begun to shift. Rep. Ahn, who had been widely expected not to run, announced late in the afternoon that he would resign his position as chairman of the National Assembly's Climate, Energy, Environment and Labor Committee and join the Jeonbuk gubernatorial primary. Ahn told reporters, "I will pursue a candidacy unification with Governor Kim by the registration deadline of July 4." However, given that Kim has been expelled, the primary is now expected to proceed without a unification process. With Kim's candidacy no longer possible, the Democratic Party's Jeonbuk gubernatorial primary is expected to become a two-way contest between Rep. Ahn and Rep. Lee Won-taek.