Gyeonggi-do, 6 Welfare Facility Corporations and Managers Caught Embezzling Over 200 Million Won in Facility Subsidies

[Asia Economy (Suwon) = Reporter Lee Young-gyu] Gyeonggi Province has uncovered six individuals, including welfare facility corporations and facility officials, who embezzled over 200 million won in related budgets such as facility subsidies.

The Gyeonggi Province Special Judicial Police Unit for Fairness announced on the 24th that from April to November this year, it conducted a planned investigation into elderly and disabled welfare facilities, and has either sent or plans to send six people, including the operating corporations and facility heads of two facilities, to the prosecution on charges of violating the Social Welfare Act.

As a result of the investigation, it was found that at an elderly welfare facility in Anseong City, the former facility head Mr. A embezzled 86.93 million won in labor costs 576 times over seven years, which were paid to workers using city subsidies, and used the money for dining expenses, former office manager’s director fees and living expenses, condolence money, and other purposes.

The province explained that there were also signs of a kind of "money laundering," where part of this money was sent to the headquarters of the entrusted operating corporation to cover corporate contributions that the corporation was supposed to bear, and then returned as corporate contributions.

The corporation entrusted to operate this facility was investigated to have embezzled 39.89 million won in subsidies by receiving back part of the salaries from current pastor Mr. A and former office manager Mr. B, and using it for living expenses of retired church pastors or for corporate headquarters business promotion expenses.

At a residential facility for the disabled in Icheon City, former facility head Mr. C was caught colluding with the corporate representative to improperly use 80.53 million won in subsidies and donations.

Mr. C secretly hired a life rehabilitation teacher to handle general administrative tasks, then fabricated that rehabilitation education work was being done, embezzling 18.91 million won in subsidies.

Additionally, claiming to raise operating funds for the facility, he created a ginger field and mobilized 24 workers for farming over five months, receiving 3.52 million won in overtime pay from subsidies.

Mr. C also used a work vehicle for personal purposes, used part of the facility’s livelihood allowance for staff dining expenses, and reportedly received kickbacks from business partners, the province added.

The corporate representative Mr. D of this facility was found to have received 54.9 million won in donations collected at the facility into the corporate account instead of the facility account 370 times over four years, creating and using it as corporate contributions.

The total amount of subsidy embezzlement and improper use of donations at these two facilities was identified as 207.35 million won.

Kim Young-soo, head of the Gyeonggi Province Special Judicial Police Unit for Fairness, said, "Some facility heads were taking subsidies, which have strictly limited uses, as if they were peeling dried persimmons," and added, "The corporations caught this time are large corporations that conduct fundraising activities nationwide. We plan to recommend the Ministry of Health and Welfare conduct on-site investigations to see if similar cases exist at about 70 social welfare facilities nationwide that they operate on consignment."

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