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Press Release
KRW 33 bil. to be recovered from welfare fraud over the past year
- Date2015-01-08
- Hit2,489
October 29, 2014
Hospitals managed by administrators falsely claimed the largest amounts of welfare benefits
Since the launch of the Government Welfare Fraud Report Center in October last year, the ACRC has received a total of 729 subsidy fraud reports in just one year. Among them, as many as 170 reports were deemed to have suspicion of fraud and forwarded to an investigative or supervisory agency.
When the investigations on those 170 reports are completed, the ACRC expects that it will be able to redeem the falsely paid benefits of about KRW 33 billion. The investigations on 62 cases out of the 170 were already closed, and confirmed the recovery of KRW 3.7 billion from the fraudulent claimants.
The area with the most amount of subsidies to be recovered was medical care benefits fraudulently claimed by the so-called "administrator hospitals" that are illegally run by non-medical practitioners. The fraudulent claims in this area amounted to more than KRW 25 billion, representing 75.8% of the total amount of money to be recovered by the Center over the past year.
The second most falsely paid area was medical care benefits claimed by hospitals and nursing homes with the expected amount of redemption being KRW 2.7 billion (8.2%), followed by fraudulent claims of "employment promotion subsidies/ job training subsidies" with KRW 1.9 billion (5.8%) to be recovered.
The Government Welfare Fraud Report Center was launched on October 15, 2013 under the recognition that the public's satisfaction with welfare policy is low due to the absence of a unified system to respond to the loss of the welfare budget even if the total welfare budget of the government exceeds KRW 100 trillion.
Since the launch of the Center, the people's interest in benefit fraud has significantly increased. Between February 2008 and October 2013, the ACRC received only 304 welfare fraud reports (2.0% of 15,337 reports in total) with 4.5 reports per month on average. After the opening of the Center, the monthly average number of reports has skyrocketed 13.5 times to 60.8 reports.
The amount of money to be recovered from welfare fraud has also risen by 63 times to KRW 33 billion from KRW 525 million over the same period on annual average.
For convenient reporting of welfare fraud, the Center has developed a mobile application for filing welfare fraud reports as well as a telephone counseling reservation system (110) so that reservations can be made during the weekend and then the Center will call back the next weekday.
Hospitals managed by administrators falsely claimed the largest amounts of welfare benefits
Since the launch of the Government Welfare Fraud Report Center in October last year, the ACRC has received a total of 729 subsidy fraud reports in just one year. Among them, as many as 170 reports were deemed to have suspicion of fraud and forwarded to an investigative or supervisory agency.
When the investigations on those 170 reports are completed, the ACRC expects that it will be able to redeem the falsely paid benefits of about KRW 33 billion. The investigations on 62 cases out of the 170 were already closed, and confirmed the recovery of KRW 3.7 billion from the fraudulent claimants.
The area with the most amount of subsidies to be recovered was medical care benefits fraudulently claimed by the so-called "administrator hospitals" that are illegally run by non-medical practitioners. The fraudulent claims in this area amounted to more than KRW 25 billion, representing 75.8% of the total amount of money to be recovered by the Center over the past year.
The second most falsely paid area was medical care benefits claimed by hospitals and nursing homes with the expected amount of redemption being KRW 2.7 billion (8.2%), followed by fraudulent claims of "employment promotion subsidies/ job training subsidies" with KRW 1.9 billion (5.8%) to be recovered.
The Government Welfare Fraud Report Center was launched on October 15, 2013 under the recognition that the public's satisfaction with welfare policy is low due to the absence of a unified system to respond to the loss of the welfare budget even if the total welfare budget of the government exceeds KRW 100 trillion.
Since the launch of the Center, the people's interest in benefit fraud has significantly increased. Between February 2008 and October 2013, the ACRC received only 304 welfare fraud reports (2.0% of 15,337 reports in total) with 4.5 reports per month on average. After the opening of the Center, the monthly average number of reports has skyrocketed 13.5 times to 60.8 reports.
The amount of money to be recovered from welfare fraud has also risen by 63 times to KRW 33 billion from KRW 525 million over the same period on annual average.
For convenient reporting of welfare fraud, the Center has developed a mobile application for filing welfare fraud reports as well as a telephone counseling reservation system (110) so that reservations can be made during the weekend and then the Center will call back the next weekday.
