Internship Contract Signed and Subsidy Embezzled... Nonprofit Organization Director Sentenced to Prison with Probation

Partial Recovery of Worker Salaries
Collected 30.65 Million Won Over 11 Installments

The representative of a non-profit organization who embezzled part of the workers' wages after participating in a senior internship project commissioned by the Ministry of Health and Welfare was sentenced to a suspended prison term.

On the 24th, Judge Seo Bo-min of Criminal Division 11 at the Seoul Eastern District Court announced that A (53), who was indicted on charges of fraud and violation of the Subsidy Management Act, was sentenced to six months in prison with a two-year suspension.

A, the representative of a non-profit organization that holds performances for patients, was indicted on charges of fraudulently receiving subsidies by participating in a project that involved signing labor contracts with seniors aged 60 or older from February to September 2022.

In February 2022, A submitted an application to the executing agency C to hire five workers aged 60 or older at the non-profit organization on the condition of working three days a week.

Companies selected for the project received support covering 50% of the monthly salary per person for three months, up to a maximum of 400,000 KRW. Additional support was also provided as hiring subsidies if employment contracts continued for more than six months after the internship ended.

At the time, A’s non-profit organization was unable to carry out the internship due to financial difficulties, but A accepted applications from supporters who promised to return part of their wages. After the project was selected and the workers’ monthly salaries were paid, A received part of the wages back. A also received 1,250,000 KRW from the executing agency C as compensation for participating in the project.

Using this method, A embezzled a total of 30,650,000 KRW in subsidies over 11 occasions from five executing agencies and 48 workers.

The court stated, "The defendant did not have the ability to properly carry out the internship project, which is intended to create jobs for seniors," and added, "Nevertheless, it is judged that subsidies were obtained through fraudulent means such as false applications," explaining the reasons for sentencing.

However, the court took into consideration that A deposited an amount equivalent to the damages for the victim foundation and showed remorse for the wrongdoing.

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