Gyeongnam Province Takes Strong Action Against Fraudulent Fuel Subsidy Recipients

Korea Petroleum Management Service Joint Inspection Targeting Truck Owners and Gas Stations with Suspicious Transaction Records

Gyeongnam Provincial Government Office.

[Asia Economy Yeongnam Reporting Headquarters Reporter Lee Seryeong] Gyeongsangnam-do Province will inspect freight truck owners and gas stations suspected of fraudulent receipt of fuel subsidies within the province until the 24th.

The province announced on the 1st that, starting from May 30th for four weeks, it will conduct joint inspections with the Korea Petroleum Management Service on freight truck owners who fraudulently received fuel subsidies and gas stations suspected of conspiring or participating in such fraud within the province.

Using the continuous monitoring system for suspicious fraudulent transactions established by the Ministry of Land, Infrastructure and Transport, suspicious transactions will be automatically extracted by type to investigate whether fraud has occurred.

Focus will be placed on cases such as ▲ refueling more than three times within one hour or other short periods ▲ multiple refuelings exceeding the fuel tank capacity ▲ refueling diesel fuel for longer than the distance traveled, refueling vehicles not eligible for fuel subsidies, or receiving fuel subsidies through conspiracy or participation.

Truck owners and corporations confirmed to have committed fraud, as well as gas station operators involved in conspiracy or participation, will be subject to administrative sanctions under the Freight Truck Transportation Business Act and the Freight Truck Fuel Subsidy Management Regulations.

The fuel subsidy system refunds part of the increased fuel tax in the form of subsidies for buses, taxis, and freight trucks.

It was introduced in July 2001 when the government reformed energy taxation and raised fuel taxes on diesel and LPG to alleviate the burden on the freight industry.

A provincial official stated that in 2021, 170 cases of fraudulent receipt of freight truck fuel subsidies were detected, resulting in the recovery of 250 million KRW in subsidies, suspension of fuel subsidy cards for six months to one year, and reduction of corporate freight trucks.

Heo Dongsik, Director of the Urban Transportation Bureau, said, “We will continue to conduct inspections of fraudulent receipt using the suspicious transaction monitoring system and analysis of fuel subsidy payment records,” adding, “We will closely cooperate with the Ministry of Land, Infrastructure and Transport to prevent cases of unfair gains through fuel subsidies.”

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