Gang Involved in Embezzling Government Subsidies by Gathering Entry-Level Workers During the COVID-19 Period

A gang that recruited young workers during the COVID-19 pandemic and embezzled 200 million won in government living stabilization funds through loans was caught by the police.

The Metropolitan Investigation Unit of the Incheon Metropolitan Police Agency announced on the 17th that they arrested A, a man in his 20s who was the ringleader, on charges of violating the Act on the Management of Subsidies, and booked 17 accomplices including B, also in their 20s, without detention.

The Metropolitan Investigation Unit of the Incheon Police Agency announced on the 17th that they have arrested Mr. A, a man in his 20s and the ringleader, on charges of violating the Act on the Management of Subsidies, and have booked 17 accomplices, including Mr. B in his 20s, without detention.
[Photo by Incheon Police Agency]

A and others are accused of embezzling 200 million won in COVID-19 living stabilization funds loaned by the Korea Workers' Compensation and Welfare Service from June 2020 to April 2021.

The living stabilization fund loan is a program that lends up to 20 million won to workers whose wages have decreased due to the spread of COVID-19. A’s gang recruited young workers in their 20s who urgently needed money through social networking services (SNS) such as Facebook, then forged documents to make it appear as if they were employees of a ghost company they created, enabling them to receive the loans.

A’s gang divided roles such as profit manager, loan recruiter, and document forger to systematically plan the crime. When each person borrowed between 10 million and 20 million won, A took 60% of the amount, and the loan applicant kept the rest.

The police notified the Korea Workers' Compensation and Welfare Service to recover the loaned funds, and are considering applying for seizure and confiscation of the criminal proceeds before prosecution to freeze the assets of A’s gang.

A police official said, "Fraud involving national subsidies is a serious crime," and added, "We plan to continuously crack down on similar crimes."

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