Foreigners Applying for Industrial Accident Compensation After Self-Harm... Aiming for Insurance Money and Visa Extension

Brokers Who Collected Fees After Arranging the Scheme
Undocumented Immigrants Exploited Industrial Accidents to Extend Stay

A group of foreign workers who deliberately severed their fingers to apply for industrial accident benefits, thereby extending their stay permits and receiving insurance payouts, along with brokers who facilitated this and collected fees, were arrested by the police. Most of those involved in this self-harm fraud were either undocumented immigrants or individuals whose stay period was about to expire, exploiting the fact that recognition of an industrial accident could extend their stay.

On the 22nd, the Busan Metropolitan Police Agency's Criminal Mobile Unit announced that broker Mr. A and 13 foreigners who fraudulently received industrial accident insurance benefits were arrested on charges of fraud and violation of the Industrial Accident Compensation Insurance Act, with two accomplices booked.

From August 2022 to July last year, Mr. A recruited foreigners working in domestic restaurants and construction sites whose stay period had expired or who were illegally residing and needed a visa. Mr. A is accused of having them intentionally injure their bodies, then fabricating industrial accident claims by submitting medical treatment applications to the insurance corporation and fraudulently receiving insurance payouts.

To obtain industrial accident approval, Mr. A instructed the foreigners to strike their fingers with axes or stones to sever them. He also created fake workplaces and prepared false employment contracts, fabricating false claims that the foreigners were injured while working at those workplaces.

The foreigners whose industrial accidents were recognized received insurance payouts ranging from 10 million to 31 million KRW per person. The total amount fraudulently obtained by the group reached approximately 500 million KRW. They were also able to extend their stay by obtaining industrial accident visas (G-1-1). Receiving an industrial accident visa exempts them from liability for illegal stay and allows their stay period to be extended up to two years during treatment.

Mr. A lived a luxurious life by collecting fees ranging from 8 million to 15 million KRW per case from the foreigners. Police investigations revealed that Mr. A planned this crime based on his past experience working at an administrative office and conspired using foreign acquaintances as interpreters.

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