Gwangju Labor Office Uncovers 1,049 Cases of Fraudulent Claims Including Employment Retention Support Fund Last Year

Recovery of 5.1 Billion KRW and Legal Action Against 122 Individuals

[Asia Economy Honam Reporting Headquarters Reporter Yoon Jamin] The Gwangju Regional Employment and Labor Office announced on the 11th that it detected 1,049 cases of fraudulent claims for unemployment benefits and employment retention support funds last year.

A total of 5.1 billion KRW, including 1.8 billion KRW in fraudulent claims, was recovered, and 122 individuals involved in fraudulent claims were prosecuted.

The handling of these cases was carried out by the Gwangju Labor Office using the computer network to identify and receive reports of suspected fraudulent claims, as well as through planned investigations.

In particular, through joint investigations with the Gwangju Police Agency, eight workplaces involved in fraudulent claims related to employment stabilization projects with broker involvement were uncovered. Two main offenders were arrested and prosecuted, and 16 co-conspiring employers were booked. Approximately 900 million KRW, including additional collections, was recovered from the eight workplaces.

With the expansion of investigative authority of special judicial police officers (employment insurance investigators) from unemployment benefits and vocational skill development projects to employment stabilization projects, the detection rate of fraudulent claims has significantly increased, and both administrative sanctions and criminal penalties against fraudulent claimants are on the rise.

By type of fraudulent claims, unemployment benefit fraud accounted for 956 cases, representing 91% of all fraudulent claims; however, fraudulent claims related to employment stabilization projects have been steadily increasing recently due to the impact of COVID-19.

Typical types of employment insurance fraud include cases where individuals receive unemployment benefits while concealing their work as regular or daily workers, and cases where recipients of employment retention (leave, furlough) support funds do not actually take leave or furlough or receive wages back from workers (so-called payback).

The Gwangju Labor Office plans to focus on planned investigations into fraudulent claims for unemployment benefits and employment stabilization support funds this year to strictly crack down on employment insurance fraud. It will also operate a permanent window for voluntary reporting of fraudulent claims and strengthen publicity to prevent fraudulent claims.

In line with the recent increase in government subsidies and the corresponding rise in fraudulent claims, the office will increase the number of employment insurance investigators, form a dedicated team to establish and review planned investigations, and maintain an organic cooperative system with local police to promote joint investigations.

A representative of the Gwangju Regional Employment and Labor Office stated, “We will strictly respond, including criminal punishment, to acts such as falsely recognizing unemployment to receive unemployment benefits (job-seeking benefits) despite actually working, or falsely receiving support funds after reporting employment retention measures (leave or furlough).”

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