Strengthening Penalties for Fuel Subsidy Fraud, Mandatory Towing Vehicle Rescue Operation Report

[Asia Economy Reporter Yoo In-ho] Starting from July 1st next month, administrative sanctions for fraudulent receipt of fuel subsidies will be strengthened, and a rescue consent form will be mandatory during wreck truck recovery operations. Various regulations related to the transfer and acquisition of freight vehicles will also be eased.

The Ministry of Land, Infrastructure and Transport announced on the 15th that the amendment to the Enforcement Decree and Enforcement Rules of the Freight Vehicle Transportation Business Act, which includes these system improvements, was promulgated on the 16th and will take effect from July 1st.

First, additional requirements for receiving fuel subsidies will be added. Currently, fuel subsidies should only be received by freight vehicle owners who are actively operating, but due to unclear payment requirements, some cases occurred where subsidies were received even after reporting business suspension or closure under tax law.

To prevent this, a requirement will be added according to Article 8 of the Value-Added Tax Act that the recipient must “register as a business operator and actually conduct business.”

Administrative sanctions for fraudulent receipt of fuel subsidies will be strengthened. The criteria for administrative sanctions against freight vehicle owners who fraudulently receive fuel subsidies will change from the number of detections to the number of violations, and if habitual violations are detected, more severe suspension of subsidy payments will be imposed. The suspension period will be strengthened to 6 months for the first violation and 1 year for the second or subsequent violations.

Administrative sanctions will also be strengthened if necessary measures such as covers, packaging, or securing devices are not taken to prevent cargo loaded on freight vehicles from falling off.

The system will be improved so that a written rescue consent form must be obtained when a rescue-type special vehicle (Reckercha) transports a broken-down or accident vehicle. Transport operators or drivers operating rescue-type special vehicles must notify the vehicle owner or driver of the total fare and charges to the final destination and prepare a written rescue consent form before transporting the broken-down or accident vehicle. Violations will result in an administrative sanction of a 10-day suspension of operation for the violating vehicle.