It’s been two weeks since it was revealed that a Seoul based jockey was under investigation for allegedly passing insider information to illegal betting operations. The case involving the jockey – who, although his identity was initially made public, can now only be identified by his initial “L” or “L-Mo” in Korean, could not have come at a worse time as the KRA battles to portray racing in a positive light in the face of an increasingly puritanical regulator.

Support – or at least indifference – from the majority of lawmakers is essential in resisting the recommendations of the National Gaming Control Commission, an organization that makes little secret of its aim to eliminate any form of gambling and has already succeeded in having the KRA close down its “KNetz” Internet betting service which ceased operations in July.

While the NGCC may not be able to grasp the concept, most lawmakers currently accept that the more restrictions there are placed upon legalized gambling, the more the many illegal ones thrive. To keep this support, however, the KRA has to be able to demonstrate that racing is clean. Bent jockeys will always pop up from time to time, but, however this case proceeds, its timing is terrible and has prompted speculation over the likely success of the next recommendations from the NGCC as outlined over the weekend by Korea Racing Journal editor Kim Mun Young.

The Electronic ID Card scheme raised its head again. Under this scheme, when trying to place a bet, a punter would be asked to produce an ID card that they have previously had to apply for and been issued. The card will have a chip that records all his gambling activity. While punters mutter darkly about essentially being put in the same category as sex-offenders by having to be on a register, it would also eliminate racing as an activity for all but those “on the register”.

On a summer’s day, the Seoul Race Park infield and track apron is packed with picnicking families and dating couples. If, in future they’re going to need to be on the government’s list of registered gamblers if they fancy a stroll to the windows to put 500 won each-way on the favourite, it’s likely they’ll spend their weekends elsewhere.

Of course, there was a very easy way of tracking punters’ expenditure. It was called KNetz and it was closed down this July. The ID card scheme, however, is a real possibility – not least because of the lucrative contracts that would need to be dished out for running it

Less likely is a reduction in the maximum bet amount although this is another NGCC proposal. Instead of the current 100,000 won per bet limit, a daily limit of the same amount be imposed. This would of course essentially close racing down and most observers agree that outside of the NGCC, there is little appetite for that due to the huge revenues it generates in both taxes and in support of agriculture.

Meanwhile, one grocery store chain is currently giving away national lottery tickets with all purchases over 10,000 won and the “Sports Toto” – where players predict the results of European football matches – can be gambled on from almost every convenience store on the peninsula. Racing feels picked upon but “Elmo” hasn’t helped its cause.

For the third time in the past year, a jockey has been referred to the police for allegedly trading “insider information”. This time its a Seoul jockey who has supposedly been passing on information, including illicit training videos, to illegal betting rings.

As the case has now been handed over to the police, the jockey in question can only be identified by his initial “L”. Before this development, the suspension of said jockey – and the reason why – was news on the KRA’s website last week but it has now been removed.

Nevertheless, simply scanning the list of current suspensions at Seoul will satisfy those of a curious mind. Two jockeys with the initial “L” were suspended this weekend. It’s not Lee Ae Li, she’ll be back next week. The other one won’t be.

“L” is the third jockey this year to become embroiled in such an affair. Seoul rider Park Soo Hong was warned off for life while a Busan based jockey is currently suspended pending further investigation.

Golf, Karaoke and Illegal Race-calls all feature in Racing’s Day at the Auditors

Monday saw top KRA officials make the journey to the National Assembly building in Yeouido, Seoul where, as part of the Ministry of Farming, Agriculture, Fisheries and Food (FAFF), it was their turn to appear in front of lawmakers as part of the annual National Assembly audit.

During the three week audit, all government departments come under scrutiny with 500 administrative sections covering everything from the Army to the Tourist Board having to appear to answer questions. It’s an event widely criticised in Korea as being little to do with serious audit and more to do with political showboating.

Indeed it often turns out that way. In the past, politicians have arrived for the Defence Department audit wearing army fatigues and staged a target practice exhibition before the questions, while others decided to cut off the power while the Korean Electrical Power Corporation (KEPCO) was being grilled so that executives could see what it was like to work by candlelight.

The Korea Times commented last year that generally all officials need to do is either “beg, bribe or entertain the parliamentarians” to get through another year. The same paper did grant, however, that if nothing else, the audit period was good for “slapstick funnies” on the National Assembly TV channel.

Chairman and CEO Kim Kwang Won headed the KRA delegation. Sadly, Kim did not show up wearing racing silks and carrying a whip. Here’s a brief summary of some of the issues that were raised by lawmakers:

* Like any audit, the main purpose was to check what the KRA was doing with its money. Especially what it shouldn’t be doing. The KRA overtime payments to staff were criticised – around 4 Billion won ($3.6Million) was allegedly paid during the audit period. This was also noted in the last audit.

* Rep. Kang Seok Ho of the ruling (and perhaps appropriately named) Grand National Party, raised the issue of “improper Golf Club memberships” purchased by the KRA to the value of KRW 1 Billion as well as KRW 100 Million put on corporate credit cards at various Karaoke bars and “Saunas”. Rep. Kang condemned the expenditure as “violating every civilized subject of public sentiment” given the ongoing recession.

* Rep. Kang Ki-Kap of the Democratic Party is generally good value at any National Assembly event. Opting to neither fight, nor smash anything up today, he instead chose to focus on illegal gambling. Given that racing on TV has now been outlawed, Kang wanted to know what the KRA was doing to counter the supposed problem of illegal live commentaries of races from the track to private gaming houses.

* The appointment of a former close advisor to President Lee Myoung Bak during his election campaign to what some see as a grace and favour position within the racing authority, came under attack

* Regulatory issues were also covered. Breakfast TV news reports had speculated that the KRA would be strongly criticised over its progress in meeting guidleines laid down by the National Gaming Control Commission (NGCC). The matter was raised with criticism for the way the KRA has pushed ahead with its promotion of Off Track Betting locations (or KRA Plazas) with the NGCC requiring that by 2013, 50% of all money wagered is done so at the track – currently it stands at 30%.

How much fall-out there is from the audit session will become clearer later in the week but overall, there was little new on the regulatory front – and sadly even less on the comedy front.