Presidential Office Sauna Construction Under Scrutiny for Alleged Cash Deal

Claims of illegal cash transactions for VIP facility raise fund source questions

A high-end sauna facility reportedly installed in the presidential office during the Yoon Seok-yeol administration is drawing scrutiny following allegations of a push for cash-only construction. This move, intended to bypass sales reporting, has sparked concerns about the origin of funds and potential financial irregularities.

Sauna Design and Cash Proposal Revealed

Information obtained reveals that presidential guards approached a construction company in early December 2022 to convert a shower area on the fifth floor of the Yongsan presidential office into a sauna. The design specified Hinoki cypress for the walls, utilizing dry heat, and incorporated a discreetly hidden door. The estimated cost for this specialized construction was presented at 45 million won, excluding value-added tax.

A company representative recounted being offered 30 million won in cash, a proposal interpreted as an attempt to evade VAT by omitting sales records. The firm reportedly declined the project due to the illegal nature of such transactions.

Contractor Change and Completion

The guards subsequently indicated that the project would be handled by an interior contractor named “21 grams.” Although the original company provided all design documents and proposals to “21 grams,” it is understood that a different entity ultimately executed the construction. This shift occurred after “21 grams,” which had previously received sponsorship related to Kim Kun-hee, was identified as participating in a presidential responsibility corporation.

By January 2023, the presidential office sauna was reportedly completed, closely adhering to the initial design. An insider familiar with the situation confirmed the installation, describing it as a “VIP healthcare” amenity.

Concerns Over Funding and Legality

The alleged request for cash-only transactions by the guards raises significant questions about the funding source for the sauna installation. Official budget allocations typically do not involve suggestions for clandestine cash dealings. Experts emphasize the need for thorough investigation into these opaque financial activities, particularly given the government’s handling of funds during the relocation and renovation of presidential facilities. One lawyer specializing in government-related cases stated,

“It is a big problem that a state agency recommends illegality such as missing sales.”

—Legal Expert

The practice of circumventing official financial procedures can lead to severe penalties. In 2023, South Korea’s Board of Audit and Inspection fined a public institution approximately 500 million KRW for similar procurement irregularities, highlighting the government’s stance on financial accountability.