Korea National Oil Corporation Wields 'Iron Fist' to Prevent Public Finance Leakage

Establishment of Fraudulent Claim Reporting Center and Operation of Intensive Reporting Period

Also, New TF Team Created for Subsidy Accountability Management

[Asia Economy Yeongnam Reporting Headquarters Reporter Kim Yong-woo] Korea National Oil Corporation has taken a "sledgehammer" approach to prevent the leakage of public finances.

On the 22nd, the Oil Corporation announced that it has established a Subsidy Fraud Reporting Center to prevent leakage of public finances and will operate a focused reporting period for subsidy fraud.

The Oil Corporation receives and manages subsidies from the government for projects aimed at improving the oil distribution structure, such as operating and improving OPINET, advancing oil distribution information, and supporting facility improvements at Altteul gas stations.

False or excessive claims of such subsidies or using them for purposes other than intended fall under the scope of fraud reporting.

The focused reporting period for subsidy fraud runs for one month from the 11th of this month to the 10th of next month. Reports can be made through the subsidy fraud reporting channel opened on the corporation’s website or by visiting or mailing in the report.

Since May, the Oil Corporation has been operating the "Public Finance Recovery System Inspection Task Force" under the Audit Office to ensure responsible management of subsidies.

The task force is responsible for inspecting the appropriateness of subsidy execution, the presence of fraud claims, and the appropriateness of sanctions imposed for fraudulent claims.

It is also leading efforts to change awareness of public finances through publicity and education to eradicate fraudulent subsidy claims.

Choi Hyung-joo, Standing Auditor of the Oil Corporation, said, “Fraudulent subsidy claims received will be strictly verified and investigated, and legal sanctions such as recovery and imposition of penalty surcharges will be enforced.” He added, “We will further strengthen the responsibility for operating the recovery system to prevent waste of public finances related to government subsidies managed by the corporation.”

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