Korea F1 circuit denies budget corruption

Even after hosting its inaugural grand prix less than two weeks ago, a cloud is above the future of Korea’s formula one race.

The Yeongam circuit has failed a state safety inspection and cancelled a F3 race scheduled for November, amid new reports of apparent corruption within the organising company and F1 promoter KAVO.

The Korea Herald said the South Jeolla provincial government is set to investigate, with some money from the circuit’s construction budget spent without documentation.

"Over the next week, we’re going to look through all the documents of KAVO," said Jung Hwan-dae, the vice-chairman of the provincial assembly.

"We’re also planning to summon officials from KAVO to investigate how the money was spent. There is something wrong here," he added.

The undocumented expenditure amounts to more than $50 million, with other media reports alleging construction firms were paid off to avoid fees.

A KAVO spokesman would not say how the missing money was spent, but commented: "No illegal conduct took place."