Embezzlement of Social Welfare Facility Subsidies 'Still Ongoing'... Gyeonggi Special Judicial Police Detect 3 Cases

[Asia Economy (Suwon) = Reporter Lee Young-gyu] Illegal activities such as embezzlement of subsidies by social welfare corporations in Gyeonggi Province are still not subsiding.

The Gyeonggi Province Special Judicial Police for Fairness announced on the 6th that, based on public interest reports and other sources, they investigated from January to June and uncovered three social welfare facilities operating illegally. They plan to send seven related parties, including the facilities and their representatives, to the prosecution once the investigation is complete. The total amount embezzled or received as unjust profits from subsidies by these parties amounts to 456 million KRW.

In a specific case, Mr. A, the representative of social welfare corporation ㄱ, hired his daughter and in-law as facility managers at two affiliated welfare facilities. Although they did not attend work, Mr. A fabricated documents to falsely show that they worked and even did overtime, embezzling approximately 102 million KRW in labor costs over three years. All labor costs were paid from subsidies. Mr. A also leased two other affiliated welfare facilities to acquaintances without permission for three years, receiving 90 million KRW in rental income. Of this, 10 million KRW was taken in cash, and 8 million KRW was embezzled by depositing it into his personal account. Additionally, although a corporate representative is not allowed to concurrently serve as a staff member at affiliated facilities, Mr. A did so and improperly received 56 million KRW in staff salaries for one year. Furthermore, he hired an in-law who did not meet the required social welfare facility work experience as a facility manager, resulting in unjust subsidy payments amounting to 53 million KRW over about a year.

Mr. B, director of the domestic violence counseling center ㄴ, from 2017 to 2018, personally conducted violence prevention education lectures during working hours and received subsidies as instructor fees. According to the guidelines for operating domestic violence, sexual violence, and prostitution prevention education, if a violence prevention education institution (counseling center) staff member lectures during working hours and receives instructor fees, the fees must be deposited into the counseling center’s operating account and used for violence prevention education projects. However, Mr. B transferred the funds to personal accounts and used about 20 million KRW for living expenses such as credit card payments, loan repayments, and insurance premiums, thereby embezzling the money.

Mr. C, representative of social welfare corporation ㄷ, was found to have illegally leased part of the corporation’s basic property building to an administrative office without prior approval. Mr. C received a deposit of 35 million KRW and monthly rent ranging from 1 million to 2.5 million KRW, using it as welfare center operating funds, thereby obtaining unjust profits totaling approximately 130 million KRW over nine years.

Such acts violate the Social Welfare Services Act and can be punished by imprisonment of up to five years or a fine of up to 50 million KRW.

Kim Young-su, head of the Gyeonggi Province Special Judicial Police for Fairness, emphasized, "Corruption in social welfare facility subsidies and illegal operation of social welfare facilities must be eradicated." He added, "The Special Judicial Police for Fairness will strengthen investigations into subsidy corruption to ensure that subsidies for socially vulnerable groups are not wasted and that fair and sound welfare projects are carried out."

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