Strengthening Verification of 'Duplicate Receipt' of National Treasury Subsidies

Financial stability and business sustainability will be reflected in the selection criteria for national subsidy project operators, and sanctions for dishonest disclosures will be strengthened.

On the 29th, the Ministry of Economy and Finance announced that the 4th Subsidy Management Committee reviewed and approved amendments to five subordinate guidelines related to national subsidies, including the Integrated Management Guidelines for National Subsidies.

The amendments were prepared to systematically and thoroughly manage and supervise the entire cycle of national subsidy projects?from operator selection, execution, to post-management?in order to prevent fraudulent claims and enhance financial transparency.

First, the selection criteria for subsidy project operators will become stricter. When selecting subsidy project operators, the head of the central government agency is required to consider not only the financial stability and self-funding capability of the operator but also the sustainability of management and business, as well as any history of legal violations related to project execution.

Verification of duplicate subsidy receipt will also be strengthened. The heads of central government agencies are obligated to verify whether subsidy project operators have received duplicate subsidies through the subsidy system ‘e-Naradoom’.

To eradicate fraudulent use of subsidies related to contracts, such as improper contract splitting and dishonest internal transactions by subsidy project operators, a management and supervision duty for the heads of central government agencies has been newly established. Additionally, supporting documents such as electronic tax invoices and card sales slips must be electronically received from the National Tax Service and card companies and registered in e-Naradoom to be recognized as subsidy expenditure.

Sanctions for dishonest information disclosure will also be strengthened. The timing and period of corrective orders for false and delayed disclosures will be specified to be within every two months from the time of recognizing false disclosure or disclosure delay, and subsidy reductions of up to 50% will be applied depending on the number of non-compliance instances with corrective orders.

The Ministry of Economy and Finance stated, "This is one of the measures to implement the Yoon Suk-yeol administration’s national task of ‘checking and improving blind spots in fiscal soundness monitoring.’ We expect that by increasing the transparency of subsidy execution, waste factors will be blocked and financial leakage through fraudulent claims can be prevented."

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