The Anti-Corruption and Civil Rights Commission to Recover 125 Billion KRW in Government Subsidy Fraud over 6 Years

Most Common in Health and Welfare Sector Including Fraudulent Benefits and Basic Livelihood Security Allowances

Chairperson Eunjeong Park of the Anti-Corruption and Civil Rights Commission is announcing the results of the regular comprehensive survey on public institution recruitment practices and improvement measures at the Government Seoul Office in Jongno-gu, Seoul, on the 20th. Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Moon Chae-seok] The Anti-Corruption and Civil Rights Commission announced on the 10th that the amount decided for recovery from fraudulent claims of government subsidies reported over the past six years totaled 125 billion won.

From October 2013 to last month, the Commission received 6,607 reports of fraudulent government subsidy claims, of which 2,073 cases were referred and sent to investigative and supervisory agencies, resulting in a total recovery decision of 125 billion won.

Analyzing 3,002 cases assigned to the Welfare Subsidy Fraud Reporting Center among all received cases, the health and welfare sector accounted for 46.9% (1,408 cases; 83.7 billion won recovery decision), making it the sector with the most frequent fraudulent claims.

Among the health and welfare sector, cases of fraudulent claims for Basic Livelihood Security Benefits (389 cases) were the most numerous. This was followed by fraudulent claims for daycare center subsidies (310 cases) and social welfare facility subsidies (211 cases).

Following the health and welfare sector, the industrial resources sector, including fraudulent claims for research and development expenses, accounted for 17.1% (512 cases; 14.3 billion won recovery decision), and the employment and labor sector, including fraudulent claims for unemployment benefits and social enterprise subsidies, accounted for 12.7% (381 cases; 13.3 billion won recovery decision).

The methods of fraudulent claims were also diverse. For example, recipients of Basic Livelihood Security Benefits who were employed at small businesses still received benefits in cash or through another person's account, effectively double-dipping, or daycare centers inflated the working hours of childcare teachers to embezzle subsidies.

The Commission pointed out that cases where company representatives falsely register researchers or create ghost companies to deposit transaction payments and embezzle government-subsidized research and development funds continue unabated.

Han Sam-seok, Director of the Commission’s Review and Protection Bureau, said, "Fraudulent claims of government subsidies are increasing, and the amount recovered is also rising," adding, "We will continue to thoroughly verify reported cases to eradicate fraudulent claims."

This content was produced with the assistance of AI translation services.