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Press Release
KRW 1.5 billion subsidy fraud uncovered
- Date2015-01-08
- Hit1,447
September 15, 2014
Head of a Social Welfare Facility Prosecuted on a Charge of Embezzlement
The Government Welfare Fraud Report Center of the ACRC has announced it received reports about the illegal receipt of retirement age extension subsidies and subsidies for the disabled. It has referred the case to the Ministry of Employment and Labor (MOEL) and the Prosecutors' Office, saying that the authorities discovered the illegal receipt of government subsidies worth about KRW 1.5 billion.
As a result, transportation companies were forced to reimburse the illegally received subsidy for the retirement age extension program. A head of a social welfare facility was prosecuted on a charge of receiving improper subsidies and embezzling the wages of disabled residents.
The investigation conducted by the MOEL revealed that eight transportation companies falsified their records in order to illegally receive the retirement age extension subsidies worth KRW 390 million. They will be obliged to pay back a total amount of KRW 1.18 billion which includes a penalty of KRW 780 million, double the amount illegally received.
Under the current Employment Insurance Act, any business lifting the retirement age limit or extending the limit by more than one year to 58 and over is entitled to government subsidies when hiring senior citizens. The "Reimbursement for Welfare Fraud" regulation of the Employment Insurance Act stipulates that any subsidy illegally received shall be retrieved along with double the amount of the subsidy concerned.
A head of the social welfare facility for the disabled located in Gyeonggi-do was also prosecuted on a charge of illegally receiving government subsidies worth KRW 110 million and embezzling wages of its disabled residents, worth KRW 270 million.
In light of this, related government agencies have taken follow-up measures such as revision of the subsidy program guidelines and reform of the subsidy scheme for retirement age extension in order to prevent similar cases from happening in the future.
"Reports on welfare fraud have increased by 18 times since the Government Welfare Fraud Report Center opened in October 2013," said an ACRC official. "We began a special reporting period until the year end over several areas prone to welfare fraud such as hospitals operated by non-doctors, employment subsidies, and subsidies for social welfare facilities."
Head of a Social Welfare Facility Prosecuted on a Charge of Embezzlement
The Government Welfare Fraud Report Center of the ACRC has announced it received reports about the illegal receipt of retirement age extension subsidies and subsidies for the disabled. It has referred the case to the Ministry of Employment and Labor (MOEL) and the Prosecutors' Office, saying that the authorities discovered the illegal receipt of government subsidies worth about KRW 1.5 billion.
As a result, transportation companies were forced to reimburse the illegally received subsidy for the retirement age extension program. A head of a social welfare facility was prosecuted on a charge of receiving improper subsidies and embezzling the wages of disabled residents.
The investigation conducted by the MOEL revealed that eight transportation companies falsified their records in order to illegally receive the retirement age extension subsidies worth KRW 390 million. They will be obliged to pay back a total amount of KRW 1.18 billion which includes a penalty of KRW 780 million, double the amount illegally received.
Under the current Employment Insurance Act, any business lifting the retirement age limit or extending the limit by more than one year to 58 and over is entitled to government subsidies when hiring senior citizens. The "Reimbursement for Welfare Fraud" regulation of the Employment Insurance Act stipulates that any subsidy illegally received shall be retrieved along with double the amount of the subsidy concerned.
A head of the social welfare facility for the disabled located in Gyeonggi-do was also prosecuted on a charge of illegally receiving government subsidies worth KRW 110 million and embezzling wages of its disabled residents, worth KRW 270 million.
In light of this, related government agencies have taken follow-up measures such as revision of the subsidy program guidelines and reform of the subsidy scheme for retirement age extension in order to prevent similar cases from happening in the future.
"Reports on welfare fraud have increased by 18 times since the Government Welfare Fraud Report Center opened in October 2013," said an ACRC official. "We began a special reporting period until the year end over several areas prone to welfare fraud such as hospitals operated by non-doctors, employment subsidies, and subsidies for social welfare facilities."
