Special Inspection on Fraudulent Claims of Parental Leave and Unemployment Benefits Until January Next Year
Up to 5 Times Additional Collection Enforcement if Detected
The Ministry of Employment and Labor will conduct a special inspection on fraudulent claims of parental leave benefits and unemployment benefits from the 6th until January 31st of next year.
During this special inspection, cases where employment insurance eligibility was falsely reported as working at a relative's business to receive benefits, or where someone else applied for unemployment recognition on behalf of a person who did not engage in job-seeking activities while staying abroad, will be closely examined. Those found to have fraudulently received benefits must return the benefits they received. The Ministry of Employment and Labor plans to additionally collect up to five times the amount of the benefits paid and pursue criminal penalties concurrently.
Separately from this special inspection, the Ministry is accepting voluntary reports or tips related to fraudulent claims. If voluntarily reported, the additional collection of up to five times the amount will be waived, and criminal penalties (imprisonment of up to 3 years or a fine of up to 30 million KRW) will be exempted considering the severity of the crime, such as the amount of fraud and the number of offenses.
Third parties who report fraudulent claims are guaranteed confidentiality and protection from disadvantages. If fraud is confirmed after the report, a reward equivalent to 20% of the fraudulent amount of parental leave benefits and unemployment benefits (up to an annual limit of 5 million KRW) will be paid as a reporting reward.
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Lee Jeong-han, Director of Employment Policy at the Ministry of Employment and Labor, said, "We will promote the prevention and inspection of fraudulent claims so that the employment insurance fund contributed by labor and management is used to alleviate childcare burdens and promote reemployment for those who truly need it," adding, "We will firmly protect legitimate beneficiaries while ensuring that fraudulent claimants are definitely detected and dealt with."
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