Busan Special Judicial Police Send 4 Executives of Elderly Welfare Facility to Prosecution for Embezzling 800 Million Won in Job and Free Meal Support Funds

Various Methods Including False Registration of Senior Jobs and Printing Then Canceling Receipts for Goods Orders

[Asia Economy Yeongnam Reporting Headquarters Reporter Kim Yong-woo] Four former employees of a welfare facility operating senior job programs and free meal services have been handed over to the prosecution on charges of embezzling welfare project subsidies worth around 800 million KRW.

The Busan Special Judicial Police Division revealed on the 6th that they uncovered the fact that a certain senior welfare facility misappropriated a total of approximately 810 million KRW in subsidies received over five years from local governments for senior job programs and free senior meal projects. The facility director Mr. A and three other employees, including the accounting staff, were sent to the prosecution on charges of violating the Social Welfare Services Act.

According to the Special Judicial Police, Mr. A and others are accused of arbitrarily using personal information of relatives and elderly users of senior meal centers to falsely register them as participants in the senior job program, embezzling about 500 million KRW of subsidies intended for wages of 2,102 people.

They are also charged with misappropriating over 100 million KRW in subsidies by ordering items such as vests and masks for the senior job program through an online shopping mall account under the suspect’s name, attaching the order details as expenditure proof, and then immediately canceling the orders to fake purchases.

Additionally, they falsely registered relatives and acquaintances of the accounting staff as facility workers and embezzled about 20 million KRW of subsidies used for their wages. They also purchased food ingredients for the free senior meal project from a food supplier operated by a high school classmate of the suspect, then did not receive the supplies and refunded approximately 180 million KRW to the supplier.

To conceal the crimes, Mr. A and others showed meticulousness by transferring subsidies through bank accounts under the names of relatives or colleagues’ acquaintances as if the funds were properly spent, then retrieving the money back into the suspect’s account.

They also forged bank transfer confirmations or even ordered custom-made bank seals of their main bank to stamp expenditure documents, thereby evading audits by the operating corporation and supervision by responsible public officials.

Using social welfare subsidies such as those for senior job programs and free senior meal projects for purposes other than those intended is punishable by up to five years imprisonment or a fine of up to 50 million KRW.

During the investigation, the Special Judicial Police also found that Mr. A and others embezzled about 170 million KRW in operating expenses in the senior day care service sector, in addition to the subsidies for senior job and free meal projects.

They also confirmed that the suspects fraudulently claimed about 130 million KRW in long-term care benefits from the National Health Insurance Service by falsely registering care workers. The Special Judicial Police reported these findings to the relevant agencies.

A Busan city official stated, “We will strengthen guidance and inspections to ensure that nearly 5 trillion KRW, which accounts for 43% of Busan city’s budget allocated to social welfare, is delivered without leakage to vulnerable groups. If fraud or corruption is discovered, we will conduct strict investigations and impose severe punishments as a deterrent.”

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