Embezzlement of Social Welfare Facility Subsidies 'Serious'... Gyeonggi-do, 10 People 'Sent to Prosecution'

Kim Young-su, Chief of the Gyeonggi-do Special Judicial Police for Fairness, is briefing on embezzlement of public funds at social welfare facilities.

[Asia Economy (Suwon) = Reporter Lee Young-gyu] Gyeonggi Province has uncovered 10 individuals, including social welfare corporation facilities and current and former facility representatives, who committed illegal acts such as embezzling subsidies for social welfare facilities to establish personal business facilities or disposing of the basic assets of social welfare corporations without the governor's approval.

On the 24th, Kim Young-soo, head of the Gyeonggi Province Special Judicial Police for Fairness, held a press conference at the Gyeonggi Provincial Government Office and stated, "Since December last year, we have conducted a planned investigation focusing on social welfare corporations and facilities reported for corruption. As a result, we identified 10 individuals, including corporations and current and former facility representatives, who committed subsidy embezzlement and other corrupt acts, and referred them to the prosecution."

In a specific case, Organization A used 38 million KRW of subsidies received from the city to install a container for a concession stand needed at a paid facility called 'Pet Theme Park,' which is operated by an individual, and to purchase furniture and home appliances. The organization cleverly disguised the facility as an educational space for residents' independence to avoid supervision and oversight, but in reality, it used the subsidies to establish a personal business and generate profits.

The representative of Organization B registered Mr. L, who did not actually work, as a false employee, received subsidies from the city to pay wages, and embezzled 20 million KRW in subsidies through a so-called 'payback' method by returning 1 million KRW monthly to a family member's account.

Three current and former facility managers of Facility C, operated by a religious corporation under local government consignment, were caught misappropriating subsidies and facility income by paying transaction amounts including subsidies to various companies, receiving part of the payment back in cash to create slush funds, and then using these funds again as corporate contributions.

Facility C received 103.45 million KRW in cash over the past five years from relatively large contractors and food suppliers as donations, sent this money to the religious corporation, and then received it back to the facility, thereby disguising it as a legitimate corporate contribution and deceiving even local government inspections.

Corporation D allowed third parties to use land and buildings for purposes completely unrelated to welfare projects, and Corporation E improperly disposed of part of its owned buildings, which should have been used for the corporation's core business, by leasing them without the governor's approval.

Head Kim Young-soo said, "The residents of the province, who should be the primary beneficiaries of the subsidies, are suffering damage due to some reckless facility operations," and added, "Since most illegal acts are carried out secretly, active cooperation from residents through reporting and whistleblowing is necessary to eradicate subsidy corruption."

The province is accepting reports related to violations of the Social Welfare Services Act through the Public Interest Reporting Hotline (http://hotline.gg.go.kr), Gyeonggi Call Center (031-120), and KakaoTalk channel (Gyeonggi Province Special Judicial Police for Fairness).

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