[News Today] OLYMPIC TEAM SPONSORSHIP ISSUE

[LEAD]
At major sports events like the Olympics, only official sponsors can exclusively use athletes' likenesses and the 'Team Korea' emblem. Yet, these sponsors secure supply contracts worth hundreds of millions of won with the Korean Sport and Olympic Committee—without competitive bidding. This has sparked a controversy over potential favoritism.

[REPORT]
The wall is filled with brand logos of companies in a press conference at the 2024 Olympic Games in Paris.

They are companies sponsoring the Korean Sport and Olympic Committee.

Lee Kee-heung/ Head, Korean Sports and Olympic Committee (Aug. 11)
I extend my gratitude to sponsor companies and all members of Team Korea.

Selected every four years, sponsor companies hold exclusive rights to use the emblem of Team Korea and to supply items to the Olympic team.

However, there are continuing disputes surrounding the exclusive supply rights.

This company was selected as an official sponsor in the travel sector after contributing 400 million won or about 300,000 U.S. dollars.

In return, it won a private contract worth 900 million won or 680,000 U.S. dollars for air transportation of the Korean team to Paris as well as another one valued at 1.1 billion won or some 832,000 U.S. dollars for a venue selection service during the Tokyo Olympics.

It won 65 private contracts totaling 9.1 billion won or over 6.87 million U.S. dollars from 2019.

Around this time, the Korean Sport and Olympic Committee signed private contracts worth 23.1 billion won or nearly 17.43 million U.S. dollars with eight sponsor companies.

In most cases, the down payment was over 20 million won.

Under the national contract law, the contracts must have been granted through an open, competitive bidding process.
However, the sponsors were selected through private contracts due to the exclusive supply rights.

Sports ministry official / (VOICE MODIFIED)
The ministry approves the exclusive supply rights comprehensively with little specific involvement. We found that it contradicts the original purpose.

Exclusive supply rights is an exception made to promote sports marketing.
However, critics say that it is not in accordance with the national contract law.

Rep. Park Jeong-ha / Culture, sports and tourism committee
It uses the enormous nat'l sports fund. The principle is that sponsors must be selected through a transparent process in accordance with the contract law.

The ministry of culture, sports and tourism says it will restrict exercise of the exclusive supply rights and look into the propriety of previous sponsorship contracts. It plans to take corrective measures if problems are found.