97 Truck Drivers Caught Illegally Receiving Fuel Subsidies

Petroleum Management Service Conducts Joint Investigation with Intelligent Crime Investigation Unit... Approximately 300 Million KRW Worth

[Asia Economy Reporter Kwangho Lee] A total of 97 truck owners and gas station operators were caught fraudulently receiving approximately 300 million KRW in fuel subsidies for freight vehicles.

According to the Korea Petroleum Management Service on the 14th, a joint investigation conducted with the Intelligent Crime Investigation Unit of the Gyeonggi Southern Provincial Police Agency revealed that from January 2018 to June last year, these individuals purchased fuel and fuel additives for private passenger cars at two gas stations located in Yeoju and Pyeongtaek, Gyeonggi Province, and paid using freight vehicle fuel purchase cards or obtained fuel on credit without immediate payment, thereby receiving about 300 million KRW in fuel subsidies from the government.

The Korea Petroleum Management Service, together with the Gyeonggi Southern Police Agency, uncovered these facts through approximately 10 months of computer data analysis, on-site surveillance, evidence collection of false payments, and search and seizure operations targeting suspicious businesses. The Gyeonggi Southern Police Agency has forwarded 97 suspects to the prosecution on charges of fraud and violations of the Freight Vehicle Transportation Business Act.

Notably, this achievement was largely due to the real-time sharing and analysis of data between the Ministry of Land, Infrastructure and Transport’s fuel subsidy payment records and the Korea Petroleum Management Service’s subsidy reporting system.

The freight vehicle fuel subsidy system reimburses a portion of fuel taxes to small-scale truck owners. However, many cases of fraudulent subsidy claims have occurred, such as collusion between some gas stations and recipients to make false payments. Given that the annual fuel subsidy payments amount to approximately 1.8 trillion KRW (as of 2018), thorough management is required. Accordingly, the Korea Petroleum Management Service, the Ministry of Land, Infrastructure and Transport, and local governments have established a collaborative framework for information sharing and joint on-site inspections.

Son Juseok, Director of the Korea Petroleum Management Service, stated, "The synergy effect created by real-time information sharing between the Ministry of Land, Infrastructure and Transport and the Korea Petroleum Management Service, cooperation with investigative agencies, and the on-site inspection expertise of the Korea Petroleum Management Service led to this positive outcome. We will continue to do our best to prevent illegal activities in the petroleum market that undermine the rights and interests of the public."

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