Seoul City Establishes Continuous Prevention System for Misuse of Local Subsidies

Built through integration of Cheongbaek-e System and Si Local Subsidy Management System, operation begins in December
Improved from post-detection to real-time pre-monitoring to prevent fraudulent use

[Asia Economy Reporter Lim Cheol-young] Seoul City announced on the 29th that it will operate the ‘Local Subsidy Fraud Prevention Real-time Prevention System’ from the 1st of next month by additionally linking the Local Subsidy Management System to the Cheongbaek-e system to prevent fraudulent use of local subsidies, the first of its kind nationwide.

The Local Subsidy Management System is an online service covering all stages of projects tailored to the characteristics of local subsidy projects, supporting close cooperation between local subsidy project operators and support departments for systematic on-site support. Through the Local Subsidy Management System, users can manage project announcements, applications, card and account inquiries and management functions, expenditure resolution preparation, and normal report management, enabling online management of local subsidy projects.

Previously, local subsidy project operators submitted expenditure resolution and other performance completion reports to the Local Subsidy Management System after project completion, and city subsidy project officers conducted settlement inspections by manually cross-checking afterward. However, this method risked missing the detection of ‘fraudulent use of local subsidies’ due to administrative and manpower limitations.

To address this issue, Seoul City commissioned the Korea Local Information Development Institute in March to develop and additionally link the ‘Local Subsidy Management System’ alongside the existing five business areas including local finance, local taxes, and non-tax revenue. As a result, in October, Seoul completed the establishment of the nation’s first real-time monitoring system within the Cheongbaek-e system to prevent fraudulent use of local subsidies.

Seoul City expects that by continuously monitoring subsidies through the Cheongbaek-e system, it will overcome the limitations of audit resources and minimize cases where subsidy misuse detection is missed during the manual cross-checking process by project officers, thereby improving administrative efficiency and minimizing budget waste.

Lee Chang-seok, Seoul City Audit Officer, stated, “We expect that real-time monitoring of subsidies through the Cheongbaek-e system will play a role in preventing chronic local subsidy fraud and corruption in advance,” adding, “We will continue to discover and apply preventive administrative scenarios by referring to audit cases of local subsidy fraud to ensure that citizens’ precious taxes are not wasted.”

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